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Top 10 Banks offering best Home Loan Transfer Rates

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Paying higher rate of interest is not always considered as a wise practice when borrowers can opt for low interest rate for their existing home loans. Home Loan Balance Transfer (HLBT) option assists consumers in reducing their EMIs (Equated Monthly Installments) by shifting their outstanding loan amount from their existing lenders to another financial institution. Furthermore, it is when a home loan is being taken over by another bank or NBFC (Non-Banking Financial Companies) by paying of total amount to the existing lender. Afterwards, consumer shall start paying the outstanding amount’s EMIs to the preferred lender.

Leading providers of Home Loan Balance Transfer

  • SBI
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • PNB Housing Finance
  • LIC Housing Finance
  • Indiabulls Housing Finance
  • DHFL (Dewan Housing Finance Limited)
  • Yes Bank
  • Citibank

There are several other banking and financial institutions that offer home loan balance transfer feature at competitive interest rates, such as Central Bank of India, Kotak Mahindra Bank, HSBC Bank, Union Bank of India, Standard Chartered Bank, Bank of Maharashtra, Vijaya Bank, Canara Bank, Federal Bank, J&K Bank, Dena Bank, Syndicate Bank and many others.

Now, we shall take a look at the HLBT interest rates offered by leading banks and housing finance companies. Below is a tabular representation of the minimum interest rates offered by leading financial institutions:

Compare Home Loan Transfer Rates of all Leading Banks

Bank Home Loan Transfer Rates Loan Transfer Processing Fee
SBI 8.70% onwards Upto 0.50%

Min Rs. 10,000 – Max Rs. 10,000 + applicable taxes

HDFC 8.80% onwards Upto 0.50%

Min Rs. 3,000 + applicable taxes

ICICI 8.85% onwards Upto 1.00%

Min Rs. 5,000 – Max Rs. 5,000 + applicable taxes

Axis 8.95% onwards Upto 1%, Min Rs. 10,000

+ applicable taxes

PNB Housing Finance 9.00% onwards Upto 1.00%

Max Rs. 10,000 + applicable taxes

LIC Housing Finance 8.70% onwards Upto 0.50% + applicable taxes
Indiabulls Housing Finance 8.80% onwards Min Rs. 1,000 – Max Rs. 5,000 + applicable taxes
DHFL 8.70% onwards Upto 0.50%

Min Rs. 2,500 – Max Rs. 20,000 + applicable taxes

Yes Bank 9.35% onwards Upto 0.50%

Max Rs. 10,000 + applicable taxes

Citibank 9.25% onwards Upto 1.00%

Max Rs. 10,000 + applicable taxes

Note: Mentioned Home Loan Balance Transfer rates are subject to change.

Home Loan Balance Transfer, is also termed as Home Loan Refinancing which is a handy option for you to opt and avail advantage of low interest rates from several lenders.

Low interest rate is the primary attraction for many borrowers to switch from one lender to another. If you have a longer tenure to repay your home loan, it will definitely provide considerable savings on the interest outgo. Every loan offered by any banking institution is now linked with the Marginal Cost Lending Rate (MCLR) whereas it is not applicable for NBFCs and housing finance companies. Therefore, transferring home loan from banks to NBFCs and housing finance companies could be beneficial with respect to interest rate offered.

Benefits of Home Loan Balance Transfer:

Home loan is known to be a long-term association with the lender and as per borrower it will not be easy to withdraw from it unless observes attached benefits.

  1. Lower Interest Rates:As risk for the lender is minimal because of the collateral provided, it becomes easy for them to offer transfer rate at low interest rates.
  2. Minimum Documentation: Borrower has already submitted all the related documents to the existing lender. Therefore, it becomes easy for the new lender to quickly verify the provided documents and making the process hassle free with least documents required.
  3. Reduced EMIs: On an average the EMIs of the outstanding balance gets reduced by 5%, but this also depends on the new interest rate offered by another lender.
  4. Availability of Pre-payment Facility:Even though you have transferred your existing home loan from your lender to another financial institution, you are still eligible to avail the feature of pre-payment of home loan. This means you can still pre-close or foreclosure your home loan with the new lender.
  5. No Extra Charges: Besides processing fee, there is no extra or hidden charges involved in the transfer process. However, minimum processing fee is surely required by the new lender to process and precede your balance transfer application.
  6. No Impact on your CIBIL Score: People have this perception that applying for a balance transfer will directly impact their CIBIL score negatively. However, this is not true, as no lender will reach the credit bureau before loan transfer because your previous lender has already checked and verified your CIBIL score before sanctioning home loan.
  7. Top-Up Loan: After getting your home loan balance transfer you are eligible for availing a top-up loan. Upto 25% of the principal amount can be taken as a top-up loan. This loan can be taken to repay some amount, if borrower wishes.

 Factors responsible for getting your home loan transferred:

  • Age
  • Annual and monthly income
  • Number of Dependents
  • Work Experience
  • Savings and financial history

Besides the submitted documents to the existing banks, NBFCs and Housing Finance Companies also check and consider some other important factors before loan transfer, such as borrower’s location, age of the applicant, loan term, credit score and loan type. At loansof365.com you can check its online home loan EMI calculator that will provide you the exact EMI that you need to repay for your outstanding amount. You can also check and compare various home loan balance transfer options provided by several lenders that suits your requirements.

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