Balance Transfer

Financial benefits of bank loan balance transfer from one bank to another

Benefits:

There are a number of benefits you can reap by transferring your loan from one bank to another. Some of these benefits are:

1. Reduced interest rate

2. Reduced monthly EMI

3. The option to avail a top-up loan

Precautions:

Bank loan transfers can save you quite a sum, but you need to ensure that this home loan balance transfer is actually getting you the benefits you seek. Some of the precautions you need to take are as follows:

• Check the new lender’s interest rate track record, and ensure that the new lower interest isn’t a short term thing.
• Check that the new bank’s service is satisfactory, if it isn’t you’ll have to face a lot of hassle in the future.
• Ensure that your interest rate is the base rate benchmark loan, as it is more transparent that its counter.
• Check whether the spread is variable or fixed.
• Ensure the processing fee taken by the bank is reasonable and cost-efficient.
• Give your bank prior notice before you prepay your loan.

Procedure:

Here’s how the process should be undertaken:

• Check that your new lower interest rate saves you a decent sum.
• Check the estimated cost, various fees and charges on the bank transfer of personal loan.
• Short-list the banks that benefit you the most.
• Retrieve the list of property documents deposited to your current bank and get the foreclosure letter as well.
• Use a photocopy and the list of property documents to apply for a loan at the new bank.
• Receive sanction letter and the new loan agreement.
• Check what medium does the current bank favor and take the disbursement via cheque or demand draft from the new bank.
• Transfer the property documents from old bank to the new bank.

Benefits of working with CreditNation:

While the home loan balance transfer can be a tedious process, CreditNation makes the process very simple. We help in short-listing the best banks for you that ensure you save a hefty sum for yourself. Our employees ensure that the arduous process becomes a walk in the park for you. A dedicated loan advisor is assigned to you to answer all your queries and guide you. CreditNation understands the value of your money and time and ensures a seamless home loan transfer process without a sweat.