At times, the home loan borrowers might face problems while repaying the EMIs due to hefty interest rates. In such cases, a home loan borrower can choose for a home loan balance transfer. In this process, the home loan borrower seeks a loan dealer who provides lesser interest rates than his present lender. After a successful balance transfer, the borrower can comfortably pay the home loan EMIs in the minimized interest rates to the new lender.
Leading benefits of the home loan balance transfer:
There are some wonderful benefits that a home loan borrower can enjoy while opting for a balance transfer. They are discussed here in details:
Home loan balance transfer elevates savings
The primary benefits one can get from a balance transfer for a home loan is elevated savings. If the payable EMI minimizes, a borrower can save more money while timely repaying for the loan within the deadline. Therefore, the borrower can avoid the debt trap easily.
Getting lesser interest rates
If a home loan borrower maintains an excellent financial record, he can get the least interest rate after a balance transfer. The new lender entity can thoroughly check the credit score, regular repayment status, and all other financial aspects before allowing the transfer. Thus, a home loan borrower must maintain his finances carefully while staying in the home loan setup.
Top-up loans can be availed conveniently
A second lender might allow a home loan borrower to take a top-up loan. A top-up loan is generally given to a person who has decent creditworthiness. With the help of a top-up loan, you can easily meet the expenses needed for repairing the house or renovating it. As the interest rates are lower, the borrowers might not face any problem to repay it.
Good customer service
The lender entities only show interest in a home loan balance transfer to the customers who deserve it for their financial excellence. Thus, you can expect to get satisfactory customer service. The new lender can efficiently execute all the procedures related to the balance transfer. The standard process is complicated, and you can expect comfort concerning the home loan balance transfer.
There are many lender organizations that have an online platform to execute such processes. You can expect complete guidance while choosing to execute the home loan balance transfer.
Minimizing the home loan tenure
Due to the home loan balance transfer, you can get rid of the long home loan tenure easily. Thus, as a borrower, you can reduce your anxiety related to the repayment of the home loan and lead a peaceful life.
Different banks in India provide home loans, and many people seek it. You can adequately check if the lender allows you to transfer the balance according to your preference after some time. The new lender can thoroughly verify all your personal, financial and loan-related documents before granting you the balance transfer.
Read:- Top 5 Benefits Of Prepaying Higher Home Loan EMIs
In the case of a balance transfer, you can expect a delay as the transfer procedure can be time-consuming. Moreover, you should be keen on choosing the new lender. Try carrying out several cross-checkups before finally choosing a new lender. Always remember that handling a home loan can only help you to get rid of the debt trap easily.