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 :
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
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
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
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
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
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.