Home Loan Transfer from HDFC to SBI

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.