Home Loan Balance Transfer
What is Home Loan Balance Transfer
A home loan balance transfer in India is the process of transferring your existing home loan from one bank or lender to another bank, usually to take advantage of better interest rates, lower EMIs, or improved loan terms. The new lender pays off your current loan, and you start repaying the new loan under the new terms.
Home Loan Transfer Rates
Banks | Transfer Rates |
7.50% p.a. onwards | |
7.90% p.a. to 13.20 % p.a. | |
7.50% p.a. onwards | |
8.35% p.a. | |
7.45% p.a. onwards | |
7.40% p.a. onwards | |
7.45% p.a. onwards | |
7.99% p.a. onwards | |
8.85% p.a. onwards | |
Contact the bank for details | |
7.95% p.a. onwards | |
Contact the bank for details | |
Contact the bank for details |
Note: The above-listed rates are as on August 2025 and are subject to change at the discretion of the bank.
Home Loan Balance Transfer Calculator
With technology inculcated into finance, one can effortlessly estimate the details and benefits he/she would receive from transferring a home loan to another bank. One simply needs to enter the basic details of the existing loan like outstanding loan amount, interest rate, tenure, etc. By entering these details, the calculator would be able to estimate the savings you would incur by transferring your balance to another bank.
How to Transfer Home Loan from One Bank to another?
Online Process
The process that must be followed to transfer the home loan from one bank to another is mentioned below:
Step 1: Go to the concerned bank's website.
Step 2 : Check all the terms and conditions along with the interest rate and processing fee.
Step 3: If you are satisfied with the scheme, apply for balance transfer.
Step 4 : You will need to fill in the required fields, including your name, property type, tenure of the existing loan, and the bank's name, among others.
Step 5: Upon completion, you will be able to view your loan offer.
Step 6: Pay all the necessary fees and upload your documents.
Step 7: Complete your application and wait for the approval.
Offline Process
Step 1: Collect all the necessary documents for the home loan transfer.
Step 2: Get a consent letter and outstanding loan amount statement from your current bank.
Step 3: Submit these documents to the new bank where you want to transfer the loan.
Step 4: The new bank pays off the remaining loan amount to your old bank.
Step 5: Your loan account with the old bank is closed.
Step 6: All original property documents are handed over to the new bank, completing the transfer.
What is the Difference Between a Home Loan Vs a Home loan Balance Transfer?
Feature | Home Loan | Home Loan Balance Transfer |
Meaning | A loan taken to buy, build, or renovate a house or property | Transferring an existing home loan from one bank to another |
Purpose | To purchase, construct, or improve a property | To get lower interest rates or better services |
Documentation | Requires extensive documentation and verification | Requires less documentation compared to a fresh home loan |
Approval Difficulty | Harder to get approved | Easier to get approved than a new loan |
Also Known As | Housing Loan | Refinance or Balance Transfer |
What are the Eligibility Criteria for Home Loan Transfer ?
The eligibility criteria that must be met to avail the home loan transfer facility are mentioned below:
- Age: Applicant should be between 23 to 65 years.
- Employment Type: Must be salaried or self-employed.
- Nationality: Should be a Resident Indian or an NRI (Non-Resident Indian).
What are the Documents Required for Home Loan Balance Transfer?
The documents that must submitted are mentioned below:
- Identity proof
- Address proof
- Documents related to the existing loan
- Last 3 month's salary slips
- Last 6 months' bank statements
- Last 3 years' balance sheet and profit and loss account statements (Self-Employed)
- Passport size photograph
Why Should you Transfer your Home loan?
The main advantages to opt for home loan transfer are mentioned below:
- The interest rate on your home loan may reduce after refinancing your home loan.
- Either your EMI will reduce and your tenure will remain the same, or your EMI will remain the same and the tenure will become shorter.
- This will make the overall cost of the loan lesser.
When refinancing a home loan, one must always take into consideration the processing charges and balance transfer fees. If the new bank's interest rate plus these additional charges still prove to be cheaper than the current loan, only then should a customer choose to refinance the loan.
Why and When Must You Avail the Home Loan Balance Transfer?
Why?
- One can avail a home loan balance transfer if he/she is paying a higher interest rate towards a loan in a bank that offers a lower interest rate.
- If a bank is unwilling to reduce the interest rate despite the fact that you have a cordial relationship with the organization.
- In the occasion that other bank are offering lower rates of interest.
When?
A home loan balance transfer can be availed 12 - 18 months after faithfully paying off your existing housing loan.
FAQ on Home Loan Balance Transfer
- What is the minimum time for home loan transfer?
After making on-time payments on your current mortgage for 12 to 18 months, you may apply for a home loan balance transfer.
- How many times can I do home loan balance transfer?
Only once the lock-in term for the same loan has passed may you move your mortgage to a different bank. A house loan's lock-in period typically lasts between six months and a year. You can inquire about the lock-in time for the same with the lender you borrowed money from.
- Is transferring your house loan balance a wise idea?
When the amount of the outstanding debt is bigger, it is desirable to transfer a mortgage. A home loan's EMI consists of the main amount and the interest amount, just like any other EMI. The principle balance is gradually paid off when the loan matures, lowering the total amount still owed.
- Does balance transfer affect CIBIL?
No, provided you repay your EMI on time post the balance transfer, your CIBIL will improve.
- Can I take 2 home loans from same bank?
Although there is no rule prohibiting you from servicing more than one home loan at a time, you are free to have as many home loans as you need in India.
- Is a home loan balance transfer a good idea?
Lower interest rates eventually result in lower EMIs and a lower overall cost of the loan. A cheaper interest rate provided by another lender is the main factor that leads borrowers to choose a home loan balance transfer.
- How does a house loan balance transfer work?
Send a letter or a form to your lender requesting a balance transfer, clearly outlining your reasons for doing so. An NOC or consent letter from your lender will be issued to you; your new lender will need it in order for you to submit an application. Make contact with your new lender and turn in all of your paperwork.
- What drawbacks may a balance transfer have?
Yes, there are drawbacks to balance transfers. These include balance transfer fees, increased interest rates following the introductory period, and the potential for more debt if improper spending habits aren't managed.
- Who is qualified to transfer a home loan?
The age range for eligibility for a house loan balance transfer is 23 to 65 years old. At least 12 EMIs must have been paid back to your current lender. You are not allowed to have any unpaid balances with your current lender. You must be a professional with a steady source of income, whether you work for yourself or are salaried.
- When ought my house loan to be transferred?
To avoid needless difficulty, it is preferable to maintain your loan account with your current lender in such a situation. If you have a sizable amount of debt left over and you think your new lender may offer you a better deal, you might want to think about moving your home loan.
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