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Which Bank is Best for Home Loan Transfer

Transferring your home loan balance from one lender to another is referred to as home loan transfer 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.

Banks that Offer Home Loan Transfer

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

Processing Charges

State Bank of India

8.50% onwards

0.35% + GST; minimum Rs.2,000 and maximum Rs.10,000 + GST

HDFC Bank

Between 8.75% and 9.95%

Between 0.50% or Rs.3,300 (whichever is higher) and 1.50% or Rs.5,000 (whichever is higher)

Bank of Baroda

Between 10.15% and 12.10%

100% waiver on processing charges, subject to recovery of out of pocket expenses between Rs.3,500 and Rs.10,000 + GST

ICICI Bank

Between 9.10% and 12.05%

0.50% + tax

Punjab National Bank

Between 9.40% and 12.10%

Rs.2,500

Axis Bank

Between 8.75% and 14.00%

Up to 1.00% 

LIC Housing Finance Limited

8.50% onwards (floating interest rates)

Up to 0.50%

IDFC First Bank

8.85% onwards

3.00% + tax, whichever is higher

TATA Capital 

8.75% onwards

Rs.5,000 + GST for salaried and Rs.10,000 + GST for self-employed applicants

Things to Consider Before Transferring Your Home Loan

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

Conclusion

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.

Which Bank is Best for Home Loan Transfer - Related FAQs

If you get a better deal from another bank or lender, transferring your loan account is a good decision. That way you can save a significant amount in the long run.
State Bank of India, IDFC First Bank, and ICICI Bank are some of the top options when it comes to home loan transfers.
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.

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