Regretting your decision of taking a Home Loan
from your existing bank? You can opt for a Home Loan Balance Transfer to another financial institution to avail a lower
rate of interest and better services.
Home Loan Balance Transfer is an ideal option for
people who are not satisfied with their current lender
and want to change their loan terms and conditions. However, the main reason
why people opt for a Balance Transfer is to enjoy a low rate of interest. This
move is supported by the RBI that announced an amendment in 2014 asking banks and NBFCs to stop imposing
foreclosure and prepayment charges on borrowers who have availed Home Loans at
floating rates of interest. This step has also compelled banks and NBFCs to
reduce biasing between old and new customers.
This amendment came as a huge relief to Home Loan
borrowers.So, now you can transfer your Home Loan without paying a huge
penalty. If you want to opt for a Home Loan Transfer from HDFC to SBI , here’s a comparative analysis of their interest
rates and terms.
HDFC
|
SBI
|
|
Interest Rate
Range
|
9.55% - 9.60%
|
9.45%
|
Interest Type
|
Floating
|
Floating
|
Processing Fee
Range
|
0% to 0.5% (max. ₹10,000)
|
0.35% (max. ₹10,000)
|
Loan Amount
|
5 L - 10 Crs
|
15 L - 10 Crs
|
Tenure Range
|
1-30 Years
|
1-30 Years
|
Preclosure fee
|
0
|
0
|
Part payment
fee
|
0
|
0
|
Avg. approval
time
|
4.2 Days
|
5 Days
|
Documents required for Home
Loan Transfer from HDFC to SBI
1. Identity proof
2. Address proof
3. Salary slip of last three months
4. Bank statement for the last 6 months
5. Details of your existing Home Loan account
6. Foreclosure letter from HDFC, which states the
outstanding loan amount
7. Other documents submitted to HDFC (they will be
forwarded to SBI by HDFC)
Procedure for Home Loan Balance Transfer
Follow these steps to smoothly transfer
your Home Loan from HDFC to SBI:
● Submit a letter requesting Home Loan Balance
Transfer to your new lender
● Your existing lender will then issue a consent
letter, an NOC, list of property documents, past EMI records, letter stating
your outstanding balance
● Next, you need to approach the new financial
institution and apply for a Home Loan Balance Transfer
● Apart from the documents mentioned above, your
new lender might also ask you to submit an NOC from your builder and other
documents
● Once your new loan has been granted, your new
lender will pay the outstanding loan balance to your previous lender
● The post-dated cheques that you submitted with
your previous lender will be cancelled
● After this, the transfer process will be complete
and your new loan account will be activated
Why do borrowers prefer SBI when it comes to Home
Loan Balance Transfer?
People opt for a Home Loan Balance
Transfer when they feel that other financial institutions have a better Home
Loan offer than their current one. And amongst them, SBI is an all-time
favourite due to their hassle-free and quick services.
If you’re planning a Home Loan Transfer from HDFC to SBI, keep the above
pointers in mind while filing your application.
