A borrower can check their eligibility and then apply for a housing loan. The rate of interest, tenor of the loan, and the monthly instalments will obviously vary among lenders. Moreover, with online EMI calculators, one can also sort out the instalments and then proceed with the decision in keeping with the budget and a solid course of action to mitigate deviations and other unanticipated adversities.
But certain banks and housing finance companies could levy hefty interest rates that can potentially unsettle your objectives and plans, and throw your obligations in disarray. What you can do to iron out these financial creases is transfer the entire outstanding principal loan amount to a new lender, subject to lower rates of interest.
Use an EMI Calculator to forecast your EMI
An EMI Calculator is a simple tool that lets you view the EMI for various principals, tenors, and interest rates. This tool allows you to forecast the EMI for your loan based on several parameters. This way, you know the amount you will have to pay monthly even before the loan is sanctioned. You can therefore decide on the parameters that work best for you and organise your finances accordingly.
Avoid borrowing more than you can repay
When you borrow a loan, ensure that the borrowed amount is in line with your total cost. A slight surplus might seem harmless, but it can increase your monthly EMI significantly. This, in turn, makes repayment of the loan difficult. Hence, before borrowing a loan, have a keen understanding of your financial ability to repay it and carefully arrive at the amount you need. This will help you manage your EMIs effectively and make payments on time. When you are not aware of your final expenses, it may be more cost-effective to take a line of credit. This facility from Bajaj Finserv is called a Flexi loan and it gives you a specific amount on a credit line for a chosen tenor from which you may borrow what you need, when you need it. You pay interest only on the sum you actually borrow, rather than the whole amount extended to you.
This way, you can not only benefit from the total amount payable but also make the best use of the other facilities provided by the bank, including easier installments and a more flexible loan tenor. However, every process within the purview of banking has its own stringent rules of documentation and extensive paperwork. And the transfer of a home loan balance isn’t any exception to the rule. If the loan is still in its initial stages and you are grappling with the interest rate already, you should ideally opt for the transfer.
Should you want to go ahead with the transfer, it will help if you come ready with the following documents:
- Identity proof (AADHAR Card, driver’s license, etc.)
- PAN card
- Proof of residence (in case of owned property)
- Rental agreement (in case of a rented house)
- Salary slip (preferably over the last three months)
- Bank statement (preferably over the last six months)
- IT returns (over the last two years)
- Form 16 (TDS certificate issued to you by the employer when TDS is deducted)
- Electricity bill or credit card bill
- CTC (cost to company) Proof
- Proof of income
- All documents related to property
- Business financial records (in case you have a business)
Home loan balance transfer procedure
- You have to submit a request letter to the original lender who will then assess the same
- Once the assessment is complete, the lender will supply you with a consent letter and a No Objection Certificate (NOC)
- Other documents such as a foreclosure certificate and monthly repayment records will be required as well
- You have to submit all these documents to the new lender when you approach it for the balance transfer
- You will also submit the DOB and address proof to the new lender you are transferring the balance to
- In addition to all these, you will have to carry all the documents listed earlier that will help the new lender gauge your financial standing and accordingly decide on the transfer
- If it is convinced, the original (old) bank will then hand over all loan-related documents to the new lender
- The process will then be complete
With pre-approved offers from Bajaj Finserv availing finance on home loans, business loans, and personal loans, among others, is seamless and hassle-free. Provide some basic details to know your pre-approved offer.
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