Home Loan & Balance Transfer FAQs

A home loan is a mortgage offered by a lender, usually a bank or NBFC (Non-Banking Financial Company) to an individual for buying a residential property. A mortgage is a kind of loan used to purchase a home, land, or other types of real estate. In the case of a mortgage or home loan, the lender will hold the title of the property until the loan is paid back in full along with the interest. Apply now for a home loan or a balance transfer loan from top banks at www.testmyloan.ai

Anyone with a regular source of income can apply for a home loan. You need to be either self-employed or salaried, minimum 21 years old at application and maximum 65 years at loan closure time. This is the generic home loan eligibility criteria, and every lender has its own criteria such as the minimum and maximum age limits, minimum income level, cost of the property etc.

Citizenship Status:   Permanent Resident of India

Work Experience:   Min. 3 years with a reputed company

Min. Income:   ₹30,000 per month - Living in Delhi, Gurugram, Faridabad, Greater Noida, Noida, Ghaziabad, Mumbai, Thane, and Navi Mumbai. ₹25,000 per month – Living in Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata, Jaipur, Chandigarh, Coimbatore, Nagpur, Surat, Cochin, Baroda, Indore, Vizag, Nasik, Aurangabad, and Lucknow.

Min. Property Value:   ₹40 Lakhs – Properties in Mumbai and Delhi (except NCR) ₹30 Lakhs – Properties in Bangalore, Pune, Hyderabad, Chennai, Thane, Navi Mumbai, Faridabad, Gurgaon, Ghaziabad, Noida, and Greater Noida (NCR) ₹20 Lakhs – Properties in Kolkata, Ahmedabad, Chandigarh, Cochin, Coimbatore, Indore, Jaipur, Nagpur, Surat, Baroda, Nashik, and Vijayawada ₹15 Lakhs – Properties in Aurangabad, Vizag, and Lucknow

Only immediate family members such as parents, siblings, and spouses can be co-borrowers for a home loan in India. Having a co-borrower for your home loan improves your chances of being approved for a larger loan amount.

Additionally, having a co-borrower who has a robust credit history and good credit score is preferable as compared to someone with a low credit score.

Transferring an existing home loan outstanding from one lender to another is known as a balance transfer of a home loan. Borrowers can benefit from reduced interest rates and savings on interest and that is the primary reason to opt for a balance transfer loan.

Anyone who has an existing home loan with any Bank/NBFC with a regular payment track of 12 months, can apply for a balance transfer loan. To know how you can benefit from a balance transfer on your home loan, check out www.testmyloan.ai or WhatsApp us on +917304500637

No, the interest rates applicable on balance transfer loans are lower than the interest rates of your current home loan. A balance transfer is beneficial only when you can benefit from a lower interest rate than the one, you’re currently repaying.

It is best to compare the various interest rates, eligibility criteria, loan processing fees, and documentation processes defined by different lenders before deciding on a bank. This is where Test My Loan comes in.

When applying for a home loan through www.testmyloan.ai you can apply for a home loan from a wide selection of banks & NBFCs. Depending on your case and loan requirement, we guide your application process to the right bank or NBFC where your loan can be approved and processed quickly.

Every bank or NBFC levies a different set of charges depending on their policies. These charges also differ depending on the special offers running at the bank. Here are the charges associated with a home loan, common to most banks:

Processing Fee:   When applying for a loan, a fee is paid to the lender known as a processing fee. The amount could be a percentage of the loan amount (usually 0.5 - 1% of the loan amount) or a pre-defined fixed fee for carrying out the loan formalities.

Miscellaneous Charges:   Apart from the loan processing fee, banks usually levy charges for documentation, stamp duty, credit bureau report, advocate fee for a legal opinion on the property, etc. These can vary between different lenders.

Sometimes, these charges may be waived off by different banks under special offers. WhatsApp us on +917304500637 to know about any special offers currently running on home loans.

Just like interest rates offered and charges levied, the documents that need to be submitted also vary from one lender to the other. The following documents are usually needed by all banks/NBFCs:

• Filled Loan Application Form
• Passport Size photographs of the applicant
• KYC Documents including identity & residence proofs. These include PAN Card / Passport / Driving Licence / Voters ID / Telephone or Electricity Bill / Property Tax Receipt, etc.
• Bank Statements for min. past 6 months and Salary Certificates or IT Returns for the past 2 years in case of self-employed
• Property-related documents such as Copy of approved plans for building construction/extension
• Title Report from Advocate
• Cost estimation/valuation report from an authorised surveyor/evaluator
• Allotment letter of housing board/ NOC of the society / Builder etc. as well as any other land use certificate

Existing home loan borrowers who make timely repayments towards their home loan may get the option of borrowing an additional top-up loan. This loan is usually equal to the amount you have paid off on your current home loan.

A top-up loan is a great way to ease your financial crunch and the interest charged on a home loan top-up is much lower than a personal loan. Moreover, a Top-Up loan requires little, or no paperwork and the additional money can be used for a range of expenses. We always recommend using a top-up loan to pay off more expensive loans like credit cards and personal loans since the interest savings can be substantial.

If you have an existing home loan with a good repayment record, you can instantly know how much top loan you can get on www.testmyloan.ai Just enter your current home loan details to see how much additional Top Up funds you can borrow.

A home loan is a long-term loan varying from 5 to 30 years and lenders want to ensure that they will get their money back in the long term. That’s why banks and NBFCs check the applicant’s credit history and credit score before sanctioning a home loan.

Borrowers with a good credit record/history are classified as low-risk borrowers and may be eligible for lower interest rates and fee waivers based on their credit history.

Banks do not like to give loans or credit cards to people with low credit scores. Therefore, poor credit history or low scores can make it very difficult to get a home loan. However, you can improve your approval chances with a co-borrower or by taking active steps to improve your credit score.

A co-borrower can be an immediate family member like a spouse or parents. Ideally, your co-borrower should have a regular source of income and good credit history to bolster your chances of a successful application.

Credit score cannot be repaired in a day or two. It requires time, patience, and planning. To improve your credit score, here are five steps which you can take over a few months. These are:

Regularly check your credit report for misreported data. Sometimes loans not taken by you can also reflect on your credit report, leading to a lower score.

• Pay outstanding bills on time – Ensure that all credit card and other loans are paid on time.
• Utilization of Credit Cards – It is advisable to keep your credit utilization below 30% of your credit limit for a better score
• Plan your borrowings – Bad financial planning and excessive spending beyond your income limits can lead to defaults on payments, leading to a poor score. Always borrow what you can comfortably repay.
• Consolidate your debts – Try to minimize existing loans by consolidating your debts. Fewer your loans, the lesser the chances of missing repayment and the better your credit score.
Want to know how you can improve your credit score? Talk to our loan experts on www.testmyloan.ai or WhatsApp us on +917304500637. They will be happy to guide you.

The percentage of the cost of the home not covered by the lender providing you with the home loan is known as the margin. Usually, lenders will sanction a loan of 80-85% of the actual cost of the property, which means the balance is the margin that you need to pay from your sources. So, a 20% margin means that the home loan amount sanctioned to you will be 80% of the actual cost of the property. Home loan margins can vary by bank and on a case-to-case basis.

Some of the key expenses in the purchase of property include the initial down payment, stamp duty & registration costs, and transfer charges, among others. Apart from the margin, these costs are not covered by a home loan.

Amortization is a detailed table that lists the amount outstanding after each EMI payment and the decrease of the loan balance to zero. An amortization schedule can help you understand the amount of interest payment and principal payment of any loan in every Equated Monthly Instalment or EMI you pay.
At www.testmyloan.ai we instantly share an amortization schedule of your new balance transfer loan when you enter your existing loan details.

Not really. If you’re currently servicing a home loan and wish to shift the loan to another property, your best option is to apply for a home conversion loan. Using this type of loan, you can add to your existing home loan and purchase the new one without having to opt for a second home loan.

Almost all banks and NBFCs provide home loans to their customers. ICICI Bank, HDFC Bank, Axis Bank, SBI, Punjab National Bank, and Bank of Baroda, are among the leading home loan providers. Among NBFCs many companies such as India Bulls Housing Finance, Bajaj Finance, and LIC Housing Finance, provide home loans to individuals.

You will find the lowest interest home loan options from all reputed banks and NBFCs on www.testmyloan.ai

As with any loan, there are some mandatory charges levied by the banks and NBFCs to apply for Home Loan Balance Transfer, but these can vary from lender to lender. Following are some of the common charges:

Home Loan Transfer Processing Fee:   This fee is collected by the relevant financial institutions at the time of the processing of the documents for home loan transfer. Depending on the amount yet to be repaid, your new lender can charge anywhere between ₹10,000 to 20,000 upfront. However, some banks can forgo these charges under special offers and schemes.

Foreclosure charges:   If a home loan is paid in full before the end of the loan repayment tenure, the bank may levy foreclosure charges. Typically, foreclosure charges are not more than 2-3% of the outstanding amount, depending on foreclosure & borrower type. Most banks do not levy foreclosure charges for individual borrowers.

EMI Bounce Charges:   If a particular Home Loan EMI cheque or online transfer was not honoured and ends up bouncing, the bank can charge EMI Bounce Charges.

Convenience Fees:   Some banks levy an additional fee for the benefits that the borrower will receive should they have their Home Loan Balance transferred. This is usually charged in addition to the Home Loan Processing Fee or its replacement.

No. The basic eligibility criteria of both kinds of home loans are almost identical. In the case of Home Loan Balance Transfer, the lender will also look at the loan repayment record as a key factor to determine eligibility and approval. To see the complete eligibility details for a home loan balance transfer or fresh home loan, scroll up to see Question 2.

Just like in a fresh home loan application, the documents needed by the lender are the same. See Question 9 for the complete list of documents.

Your Home Loan Balance Transfer EMI depends on the following factors:

• The outstanding principal amount of the home loan
• The EMI paid to the current lender every month
• The current outstanding tenure of the loan - number of months/years of the loan tenure remaining.
• The interest rate of the new lender

To know what the difference between your current and new home loan EMI, simply go to www.testmyloan.ai and enter your loan details. You will get a clear indication of your savings, in EMI per month, total loan interest savings over the entire tenure, how much can you reduce your tenure, and how much top-up you can get.

There are many reasons why you should consider a balance transfer of your home loan. The first and most obvious is lower interest rates. With a balance transfer, you can reduce your overall monthly home loan EMI outflow, and the total cost of repaying your loan.

Transferring your home loan also gives you flexible repayment options, so depending on your financial situation, you can adjust the tenure of your loan payment up to 360 months or 30 years.

A balance transfer also gives you the added benefit of getting a loan top-up at the same interest rate as your new home loan. This allows you to repay a more expensive credit card or personal loans you might be servicing at a higher rate of interest. To instantly know how much Top-Up loan, you can get on your home loan, check out www.testmyloan.ai or WhatsApp us on +917304500637

A typical Home Loan is used to buy a new residential property such as a house, an apartment, or land. You can even apply for a home loan for the construction of a new house on an existing piece of land. Home loans are also called secured loans or mortgage loans, as the lender holds the property as security or mortgage against the borrowed amount.

Home Loan Balance Transfer: Transfers your existing home loan from your present bank to a new lender. Borrowers can opt for a home loan balance transfer to save their money when they are getting a better interest rate from other lenders.

Once the transfer process is complete, you owe the outstanding loan amount to your new lender. Since your loan application has already been approved by your present lender, a lot less documentation is required for a home loan balance transfer.

You must consider transferring your outstanding home loan to some other lender if you are getting a better rate of interest on the rest of the loan amount, which can lead to huge savings on monthly EMIs, total interest paid, or a reduction in the loan tenure. Another reason can be to move to a bank that does not penalise you for prepayment, late EMI payments, or early foreclosure of your home loan.

Most banks do not need a guarantor while taking over an existing home loan. This is because the loan guarantor formalities may have already been taken care of by the current lender. However, this decision is made on a case-to-case basis by the bank, depending on the borrower’s financial standing.