We always try to be on the safe side in no matter what the situation is. Buying a house is still a dream for many individuals, and to make it come true, we buy different types of home loans from other banks. It isn’t easy to pick a perfect one out of the field nowadays. So, it is best to do market research before making a decision. Nowadays, many banks and financial institutions provide better extensions and policies and the actual insurance plan. So think twice while choosing an option so that it suits your financial status. Check what the additional charges that are added to the outstanding money are. Some banks or financial institutions add processing charge and also some charges while transferring the policy. Choose the best one that suits you and which provide benefits after transferring your loan. After a lot of research, we concluded that the Bajaj Finserv Home Loan transfer is one of the best option for a normal person as it provides better facilities. Let’s look into that topic.
Generally, while comparing many banks and financial institutions, we look for low-interest rates and extensions provided with the actual plan. What if the existing bank doesn’t reach your level? Is there any option like transferring the loan? The answer is YES! There are chances to transfer your insurance plans from one bank to another if the existing bank doesn’t reach your expectations. Not only a home insurance plan, but you can also transfer any insurance plan from one bank to another. But in this section, we only consider about Bajaj Finserv Home Loan Transfer.
Bajaj Finserv Home Loan Transfer
Bajaj Finserv supports the middle-class people financially by providing benefits along with the existing plan. Let’s look into the benefits of a Bajaj Finserv home loan.
Benefits Of Bajaj Finserv Home Loan Transfer
1. Lower Interest Rate: Bajaj Finserv provides a lower interest rate. It generally provides 8.10% p.a with flexible repayment options.
2. Instant Approval: It has an online portal, making users access it whenever they are free. It approves instantly when you apply for a loan through online mode. Bajaj itself takes the documentation process, and you have to provide necessary documents to them.
3. Nil Charges: If you choose to pay your EMI early by a surplus amount, no charges are added. Therefore it makes it possible for users to part-payment or pre-payment with zero charges.
4. Clarifies The Doubts: When you decide to buy a property, Bajaj Finserv helps you with the property dossier facility. It clarifies the doubts about the land and valuation process’s legal reports while buying land and guides you while buying a property. So, they guide you while buying a property.
5. Foreclosure Of The Loan: If a user wishes for foreclosure of the loan in Bajaj Finserv, it costs zero charges for the home loan’s foreclosure. This is the best benefit provided by the Bajaj Finserv, which grabs a lot of customers.
6. Additional Insurance Plans: Bajaj Finserv provides additional insurance plans available for the family if any misfortune happens. Insurance covers are provided to the family and help them financially. It also provides better top-up plans besides the existing home insurance plan. Sometimes based on the previous payments and behavior of the customer Bajaj finserv provides the same interest to both the policy and top-up plan. You can also get tax benefits up to Rs.30,000 on the top-up plan if you use it for home renovation. Additional plans for higher education, marriage, or any medical plan are added to your existing plan in this Bajaj Finserv.
7. Holiday Periods: Generally, it takes time to process the transfer of the outstanding home loan from one bank to another. During this period, it is normal to get confused about which bank the premiums have to be paid. So Bajaj Finserv provides a three-month holiday period for the balance transfer. After this period, you can decide the repayment period as per your convenience.
So we have seen the benefits provided by the Bajaj Finserv Home loan transfer, but what are its features? How much loan can it provide? Let’s look into the features section of this Bajaj Finserv home loan transfer.
Features Of Bajaj Finserv Home Loan Transfer
- Bajaj Finserv can provide loans up to ₹ 3.5 crores with an interest rate as low as possible. The interest rate it generally provides is 8.10%.
- On balance home loan transfer Bajaj Finserv provides top-up plans up to ₹ 50 lakhs.
- The flexible repayment tenure is up to 240 months.
Process Of Bajaj Finserv Home Loan Transfer
Step-1: A request is to be submitted to the existing lender about the loan transfer with reasons. This request can be an application form or a written letter. If it is an application form, then fill up all the required details without leaving any information.
Step-2: After submitting your request letter of transfer, wait for the existing lender’s No-Objection letter.
Step-3: After receiving a No-Objection letter, approach your new lender and submit all the required documents discussed earlier along with the No-Objection letter.
Step-4: Wait for the confirmation regarding the closure of your account from the existing lender.
Step-5: After that, contact your new lender and pay all the charges applied while transferring and complete the procedure.
Step-6: After completion of this process, pay the EMI of the loan that is transferred.
Who Is Eligible To Consider A Bajaj Finserv Home Loan Transfer?
i. Generally, the home loan transfer option is available only for a user who wishes to buy a property or a user who has already occupied it.
ii. The customer should hold Indian citizenship and also a resident of the country to fit for this Bajaj Finserv home loan transfer.
iii. A person is eligible to avail of this option only when he has already repaid 12 EMIs, excluding the first EMI, without any dues or bounces.
iv. The most important thing to consider while choosing this home loan transfer option is the outstanding money should be more than ₹ 5 lakhs.
v. For new users, a loan up to ₹ 30 lakhs is issued.
vi. The age limit is 25-58 years for salaried customers, and for self-employed individuals, it should be 28 to 70 years.
vii. If the customer is self-employed, then he should have experience in business for at least 5 years.
viii. If the customer is a salaried person, then the work experience he/she should have is a minimum of 3 years.
Interest Rates And Fees Charges Issued By Bajaj Finserv Home Loan Transfer
On BFL-SAL FRR fees charge is 12.90%, and BFL-SE FRR fees charge 13.30% to the applicants.
- Floating Rate: it is defined as the rate which is not fixed and varies according to the type of debt instrument. Money can be from a loan, mortgage, bond, or credit. Whatever the type of debit, this floating rate is applicable.
Documents Required While Transferring The Loan Money
The documents that are to be submitted by the applicant varies based on their type of employment. It depends on whether he is a self-employed or salaried person. So given below are the details that are to be provided by the applicant while applying for the home loan transfer option.
NOC: Apart from these KYC documents and income proofs, you have to submit No-Objection Letter from your existing lender to the new lender for hassle-free transfer. Without this letter nowadays, banks or financial institutions are not issuing loans as this can raise problems in the future.
A bank statement where your salary is credited has to be provided to the bank.
Passport-sized photos are provided by the applicant to the new lender while transferring the home loan money.
So after providing the required documents, a process has to be done to issue the transfer of outstanding money from one bank to another. Let us look into the process of transfer.
If your existing lenders don’t reach your hopes or if other lenders are providing low-interest rates along with better facilities, then only choose to transfer your home loan. Please don’t take it as an advantage because additional charges may hit you up, which you can’t bear. If the interest rate that is provided by the new lender covers all the charges, then it is better to choose this option.
What Is A Home Loan Transfer?
Transferring outstanding loan money in the existing loan plan from one bank to another bank or financial institution to reach your financial goals is termed “Home loan transfer.” Generally, we do home loan transfer because of lower interest rates provided in other banks or better policies included along with your existing loan policy. For suppose you have already bought a policy from one of the lenders and you are happy with it. But as the business is growing day-by-day, many lenders offer better policies than the ones you get. So you decided to change your lender by transferring the outstanding loan amount. This is termed as home loan transfer. It is okay to change the lender if he doesn’t negotiate with you. Home loan transfer is just a refinancing idea where you can get back your money by changing the interest rates.
Don’t hurry to change your lender. When you see an advertisement regarding low-interest rates, approach your existing lender, and ask to negotiate based on your previous payment history. If he negotiates, it’s well and good because you have known him for years, and the relationship works well between you. If you suddenly change your lender and have some problem, or any misfortune happened, it depends on the lender’s character, and he may or may not trust you because he knows only a few about you.
Why Should We Choose A Home Loan Transfer?
- Suppose interest rates for the loan in the existing bank or financial institution are more than interest rates of other banks or financial institutions. Then it is better to transfer the outstanding loan to other banks to be financially safe.
- When other banks provide more tenure periods to the plan than the existing banks or financial institutions, it is better to transfer your outstanding loan money. If the tenure period is more, it can cover your house expenses for more periods than usual.
- If you don’t like the existing bank or financial institution’s services, it is better to choose this option. Even though they provide better benefits, it is better to leave it if our soul is no satisfied.
- Choose to transfer the money only when your tenure period is more than four years. Because if you change the lender, sometimes additional charges like foreclosure are added, which is an additional burden to the borrower.
- When the overall reduced cost is less, including all the additional charges like penalty issued by the existing lender, processing charge, traveling expenses, etc., it is better to transfer your loan.
Frequently Asked Questions
1. What is an E-Home loan?
An E-Home loan is an online loan to finance your house purchase and refinance your existing loan. Digital sanctions generally take less time, and nowadays, it is trendy.
2. How is the interest rate calculated?
The interest rate is calculated using an interest calculator. You can calculate it online on different websites. The interest calculator also provides information about the tenure period and how much EMI you have to pay if the tenure period is increased, and a lot more.
3. Which interest rate is better?
Generally, there are two types of interest rates- Fixed-rate and Floating rate. In the fixed interest rate, your EMI is constant throughout your tenure period, and you can easily plan for your repayments.
But in floating interest rates, EMIs changes accordingly based on the interest rate in the market. The only advantage is that there is no charge applied to pre-payment or foreclosure in this floating interest rate.
4. What are the benefits of transferring a home loan?
The major benefit is the low-interest rate. You can also get some additional benefits from the new lender, based on the new lender’s policies.
5. Is refinancing a good idea?
Yes, it is a perfect option to save money from lenders who issue high-interest rates.
6. Does refinancing hurt your credit score?
No, it doesn’t change your credit card score.
7. How long does it take to switch a lender?
It generally takes 5 to 10 days to change, but if you apply through online mode for Bajaj Finserv Home loan transfer, then it takes just less time to process.
8. What is the maximum amount that can be transferred?8.
There is no such thing as a maximum amount, but the minimum outstanding amount should be ₹5lakhs while transferring.
9. Can a home loan be transferred to another person?
Yes, you can transfer your home loan only if you are selling your property.
10. Can the repayment period be extended at the time of transfer?
Yes, it can be extended up to 20 years but make sure that your age is less than 62 years if you are a salaried individual or 70 if you are self-employ at the end of your loan tenure.