A high-interest home loan has the potential to strain your finances. A feasible option that can be considered is a home loan transfer. This is because transferring a loan can get you lower interest rates and an added top-up loan amount in case of unprecedented situations.
However, navigating the home loan transfer process requires careful planning for maximum results. This blog will help you avoid the most common mistakes people make while transferring funds to chosen NBFCs.
What is a home loan transfer?
A home loan transfer is basically a stability switch of a home mortgage. It is the technique of moving an existing home loan from one lender to another. You can now transfer your loan using a home credit instant loan app! This is commonly carried out to take advantage of better terms and conditions, lower interest rates, or improved offerings by the new lender.
Benefits of transferring a home loan consists of decreased interest rates, higher customer support, or extra favorable loan terms.
What mistakes are you most likely to make when transferring home loans to NBFCs?
The transfer process seems easy and straightforward, but it is a long-drawn process requiring an eye for detail. The most common and favourable option to transfer the loan to is NBFCs, which offer attractive and competitive interest rates.
Here’s a guide to help you avoid common mistakes and make sure that you make a smooth home loan switch to your preferred lender:
● Mistake 1: Missing the loan eligibility criteria
There are different home loan eligibility criteria for different NBFCs. This is especially the case when transferring home loans. You need to make sure that the required criteria are met, as it might be slightly different from your current lender. Eligibility details can be verified using its home credit instant loan app.
● Mistake 2: Not Comparing Loan Options Thoroughly
Don’t jump at the first lender you find! Carefully compare interest rates, processing prices, prepayment penalties and other costs across various NBFCs and your existing lender. Comparing the lenders thoroughly will help you make better decisions.
● Mistake 3: Underestimating Processing Time
The home loan transfer process takes time. Don’t wait until the last minute to initiate the transfer. Factor in processing times for each of your present lenders and the NBFC. Gather all the documents beforehand to expedite the process.
● Mistake 4: Forgetting Hidden Costs
While the marketed interest rate may be appealing, there are probably hidden fees involved. Look out for processing prices, legal costs, valuation charges, and any prepayment consequences related to your existing loan. Factor those prices into your general comparison while evaluating distinctive NBFC offers.
● Mistake 5: Forgetting Your Long-Term Goals
Think beyond the immediate advantages. Choose an NBFC that gives flexible repayment alternatives that align with your long-term monetary goals. Consider factors like the loan tenure, interest fee type (constant or floating), and the capability to make prepayments without penalty.
Which is the best NBFC to transfer home loan to?
After thorough research, I found that Bajaj Finserv offers the best home loan transfer terms and conditions. They provide favourable interest rates that are relatively lower than those of their counterparts.
The home loan transfer process is very simple and easy to understand. They also offer a top-up loan of up to Rs. 1 crore with no restriction on its use. The application process is fast with minimal documentation required.
Summing up
By avoiding these common mistakes and choosing the Bajaj Finserv home credit instant loan app, you can make home loan transfer pretty simple and easy!