Home loans are long-term commitments, and sometimes it is better to transfer your home loan to a different lender for better terms. Currently, SBI and HDFC offer some of the best interest rates if you are considering transferring your home loan.
Transferring your home loan balance from one lender to another is referred to as a home loan transfer, home loan refinancing, or home loan takeover. You pay nominal processing and transfer charges for better service or lower interest rates.
Here, we will cover the top banks that offer home loan balance transfer services.
All banks that offer housing loans also offer home loan transfer services. To know which bank is best for home loan transfer, go through the list of the top contenders and their charges -
|
Bank |
Interest Rate p.a. |
Processing Charges |
|---|---|---|
|
State Bank of India |
7.25% to 8.55% onwards |
0.35% of the loan amount, minimum ₹5,000 and maximum of ₹15,000 + GST |
|
HDFC Bank |
7.75% to 13.20% |
Between 0.50% or ₹4,000 (whichever is higher) and 1.50% or ₹5,000 (whichever is higher) |
|
Bank of Baroda |
7.20% to 9.95% |
Loan amount up to ₹50 Lakh - 0.50%, Min: ₹8,500 and max: ₹15,000 |
|
ICICI Bank |
Between 8.50% and 11.20% |
0.50% + tax |
|
Punjab National Bank |
Between 8.25% and 11.15% |
0.35% of the loan amount, Min: ₹2,500, max: ₹15,000 |
|
Axis Bank |
Between 7.10% and 12.00% |
Up to 1.00% or ₹10,000 (whichever is higher) + GST |
|
LIC Housing Finance Limited |
7.15% onwards (floating interest rates) |
Up to 0.50% + GT |
|
IDFC First Bank |
8.85% to 10.50% |
Up to 3.00% + GST |
|
TATA Capital |
8% to 13% |
Up to 3% of the loan amount + GST |
Home loans are generally long-term loans; thus, any decision related to them should be taken carefully. Here are some things you must check before you transfer your home loan to a new lender -
Home loans are generally long-term loans, thus any decision related to them should be taken carefully. Here are some things you must check before you transfer your home loan to a new lender -
Check the processing fee and transfer charges, if any
Compare the interest rates between your current and new lender
Consult the new lender to check for any hidden charges
Compare the services, payment methods, and ease of transacting
Based on how many EMIs are left to pay, see if transferring makes sense
If you are not happy with your current home loan provider, don’t think that you are stuck with them. Since home loans may extend up to 30 years, if you get any chance of saving money, you should opt for it.
You can easily transfer the balance home loan to another lender. If you are considering transferring your home loan, look out for offers from other lenders. You can take the opportunity to negotiate a lower interest rate and longer tenure.
However, make sure to check all aspects before making a decision. Calculate if you will be actually saving money after deducting the fees, charges, and new interest rates.
You can transfer your existing home loan to one of Moneyview’s partner lenders. To know more, visit the Moneyview website or download the app.
If you are not happy with your current home loan provider, do not think that you are stuck with them. Since home loans may extend up to 30 years, reducing your interest rate by even 1% can save you a lot of money.
You can easily transfer the balance of your home loan to another lender. If you are considering transferring your home loan, look out for offers from other lenders. You can take the opportunity to negotiate a lower interest rate and longer tenure.
However, make sure to check all aspects before making a decision. Calculate if you will be actually saving money after deducting the fees, charges, and new interest rates.
You can transfer your existing home loan to one of Moneyview’s partner lenders. To know more, visit the Moneyview website or download the app.
Yes, banks charge a home loan transfer fee that depends solely on the bank you are transferring to. It can go up to 3% or a one-time payment of Rs. 10,000.
One of the major disadvantages of transferring your home loan is the hefty processing charges levied by some banks. It is non-refundable, so this should be taken into account while considering a home loan transfer.
Home Loan Types & Eligibility Guide
Home Loan Insights and Guides
Moneyview UPI Insights and Guides
CIBIL Score Check and Boost Guide
Loan EMI Calculators
Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
Was this information useful?
