Lower Your Home Loan Interest Rates with a Balance Transfer

Picture this: You are on a home loan, but the interest rates feel a bit high. What if there is a way to switch to a better rate and save on EMIs? This is where a home loan balance transfer can help. A balance transfer allows you to shift your loan to a new lender, usually at a lower interest rate. Let’s dive into how it works and how it might help you manage your finances more efficiently.

What is a home loan balance transfer?

A home loan balance transfer is a smart move to reduce your existing loan’s interest rate. Here is how it works: if another lender offers a better rate than your current one, you can move your outstanding balance to them. The process could mean significantly lower EMIs, and savings on the total interest you pay over the loan term.

With a Bajaj Housing Finance Home Loan Balance Transfer, you gain access to competitive interest rates starting from 8.10%*  p.a. and convenient repayment terms. Additionally, you can apply for a top-up loan on your existing loan amount, helping you meet other goals like home renovation and repairs. The process is straightforward: check your eligibility, apply online, and benefit from a seamless transition that reduces your loan burden and maximises your savings.

Benefits of a home loan balance transfer

Why go for a balance transfer? The primary reason is to reduce the financial burden of high interest. Other reasons include:

1. Lower monthly EMIs: With a reduced interest rate, your EMI goes down, helping you save each month.

2. Better loan terms: Many lenders offer flexible terms, like longer repayment periods, which can ease your monthly payments.

3. Additional top-up loans: A top-up loan offers extra funds without extra paperwork, making it convenient for covering renovations, and repairs.

4. Better customer service: You could opt for a balance transfer for better customer support, and making the switch can bring in a more responsive service experience.

Additional read: How does a home loan balance transfer work

Key things to consider

If you are considering a balance transfer, here are some factors to weigh before you commit:

• Interest rate comparison: Compare interest rates across different lenders. Even a 0.5% reduction could mean significant savings.
• Remaining loan tenure: If you are close to finishing your loan term, a transfer might not save you much in interest. The longer you have left, the more worthwhile a transfer can be.
• Eligibility criteria: Each lender has criteria, including income, credit score, and outstanding loan balance. Make sure you are eligible before applying.

Real-life example of savings from balance transfer

Imagine you took a Rs. 40,00,000 home loan for 20 years at an interest rate of 10%. Now, if a lender offers an 8.7% rate on the same amount and tenure, your EMI would decrease, allowing for substantial savings on interest.

Here is an approximate breakdown:

• Original EMI at 10%: Rs. 38,601
• New EMI at 8.7%: Rs. 35,126
• Monthly savings: Rs. 3,475
• Total savings over 20 years: Approximately Rs. 8,34,000

Even a reduction from 10% to 8.7% can yield significant savings, easing your monthly budget and helping you reach other financial goals.

Is a balance transfer right for you?

If your existing loan rate feels high and there is still time left on your term, a balance transfer can be a great way to save. Not only do you lower your EMIs, but you also reduce your total interest burden. It is like giving your finances a tune-up, ensuring that more of your hard-earned money stays in your hands rather than going toward interest.

Ready to transfer? Consider Bajaj Housing Finance

If a balance transfer sounds appealing, Bajaj Housing Finance offers competitive interest rates, long repayment tenure, and an easy foreclosure facility. With Bajaj Housing Finance, you can access a top-up loan, enjoy a stress-free application, quick disbursal, and start saving right away. A simple online application process and responsive customer service make it easier than ever to make the switch.

In a nutshell, a home loan balance transfer is not just about reducing your EMI. It is about gaining financial freedom and making sure every rupee works hard for you.

Additional read: Documents required for home loan balance transfer

How to apply for a Bajaj Housing Finance Home Loan Balance Transfer

Follow the simple steps below to apply:

1. Click the ‘APPLY’ button on the page.

2. Enter your full name, mobile number, employment type, and loan type.

3. Verify your phone number using the OTP.

4. Select your current lender, enter your monthly income, and specify the loan amount.

5. Fill in additional details like date of birth, PAN, email, and current EMI.

6. Click ‘SUBMIT’ to complete the process.

Your application will now be submitted. A representative will reach out to guide you through the remaining steps.

So, why wait? Apply now!