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Home Loan Balance Transfer

What is a Home Loan Balance Transfer ?

In the past, if you have taken a home loan and repaid a few years it is beneficial to review the loan and compare its efficacy with a balance transfer facility made available to you by us at Tata Capital. It is possible that your existing home loan with another lender was at an interest rate that is higher than the present rate. In such a scenario it makes sense to balance transfer the loan to Tata Capital at more beneficial terms. Three important features that are beneficial to you with balance transfer include reducing the loan tenure, increasing the loan amount and decreasing the EMI. All three are possible and it is up to you to make use of the facility of balance transfer.

How is Tata Capital Balance Transfer helpful to you ?

The Tata Capital Home Loan Balance Transfer helps you to :

  • Increase or decrease the existing EMI on the existing loan
  • Get a top up loan up to 25% of the original principal amount of the existing loan
  • Increase or decrease the tenure depending on your requirements

For instance, if you have an existing loan of Rs 10,00,000 with a lender at 10% interest and 20-year loan tenure then the repayment parameters are

  • Home Loan EMI of Rs 9,746.72
  • Payable for 240 months
  • Total interest payable Rs 13,29,212.80

After five years into the loan, you learn that the home loan interest rate has dropped to 8% and you want to consider a balance transfer.

 

Since 60 months (5 years) has elapsed the balance tenure is 180 months for the loan to complete and at the current EMI of Rs 9746.72 you have yet to pay Rs 17,54,409.60 to fully repay the loan. The present outstanding principal amount is Rs9,00,000 (rounded off).

 

Based on the above two sets of information we can infer as follows

 

Alternate 1 - Simple balance transfer with following parameters

  • New loan amount Rs 9,00,000 (balance outstanding in the loan with the existing lender)
  • New EMI is Rs 8696.43 (less by Rs 1,050.29 per month than the EMI with the existing lender)
  • New tenure is 180 months which is the same as the balance tenure of the loan with the existing lender
  • Overall saving of Rs 1050.29x180=1,89,052.20 for the entire tenure

Thus, in this alternative, you would save Rs 1,89,052.20 by effecting balance transfer to Tata Capital.

 

Alternate 2 - Retain the existing EMI and balance tenure

  • New loan amount is Rs 10,00,000 (as against the balance outstanding in the loan with the existing lender)
  • New EMI Rs 9652.09 (as against Rs 9746.72 in the loan with the existing lender)
  • Tenure is 180 months (same as the balance tenure in the loan with the existing lender)

Thus, in this alternative, you would retain the existing EMI and tenure but have additional Rs 1,00,000 in your hands which you could use for renovation or some other improvement to your home.

 

You could iterate and arrive at the best option to meet your requirement.

What are advantages of taking Home Loan Balance Transfer ?

The main advantages of taking a home loan balance transfer from Tata Capital are

  • Lower Home Loan interest rate
  • Lower Home Loan EMI
  • Avail top up benefits with top-up loan up to 25% of original loan amount with existing lender
  • Increased loan tenure
  • All charges and fees transparent
  • Facility of Flexi EMIs
  • Fast and easy processing
  • Bare minimum documentation
  • Special schemes for select corporate entities

You should take advantage of the many benefits that accrue to you by transferring your loan to Tata Capital from your existing lender.

How to apply for a Home Loan Balance Transfer ?

Applying for a home loan balance transfer is quite simple. You have to

  • Review your home loan with the existing lender and compare it with the terms offered by Tata Capital
  • Iterate with the help of our home loan EMI calculator
  • Decide whether you want to do a simple balance transfer or increase or reduce the EMI or increase or reduce the tenure or you want a top up loan amount
  • Collect all your documents of the loan with the existing lender

Once you have firmed up your plans for the home loan balance transfer you call fill this form and await a call from our representative.

 

Apply Now for Home Loan Balance Transfer