Loan Against Property Balance Transfer Calculator: Process and How to Use
The loan against property balance transfer calculator is an online tool that primarily helps you to evaluate the amount you are going to save when switching lenders. It may so happen that you find a lender offering lower interest rates than your current one. In such cases, transferring your loan against property to the new one is more beneficial.
What is a Balance Transfer?
Balance transfer is a process by which you can transfer your existing property loan to another lender. This facility is predominantly availed to lower the rate of interest charged by the existing lender.
Note that you may have to pay processing fees and other charges when transferring your loan against property. You may also have to submit the following documents –
Apart from a low rate of mortgage interest, borrowers also transfer their loan for the following reasons –
Longer or shorter tenure.
Higher or lower EMIs.
Benefits that the current lender does not offer.
A loan against property balance transfer also enables you to receive a high-value top-up loan. Bajaj Finserv offers Top-Up Loans of up to Rs.50 Lakh when you opt for a balance transfer.
What is a Top-Up Loan?
A top-up loan is a loan without any usage restriction unlike the loan against property. One of the advantages of availing a top-up loan is that you don’t have to provide any additional document when applying. There is no additional documentation requirements since you have already performed the same when availing the loan against property.
Top-up loans also qualify for income tax benefits if used for the following –
Home construction or purchase - Up to Rs. 1.5 Lakh on the principal under Section 80C and up to Rs. 2 Lakh on the interest paid under Section 24(b).
Home renovation – Up to Rs. 30,000 under Section 24(b) if the property is self-occupied and no limit if it is rented out.
Higher education – Full interest paid is exempted under Section 80E. Such income tax benefits will only be available for 8 years.
Check the top-up loan amount you are eligible for when using a loan against property balance transfer calculator.
How to Use a Loan Balance Transfer Calculator?
Provide only the following information when using a balance transfer calculator –
Location of your property.
Loan commencing month and year.
Total sanctioned amount.
Existing loan tenure
Existing rate of interest
New rate of interest.
The loan transfer calculator will show you the total amount you save, eligible top-up loan amount, and eligible new loan amount after you enter these necessary details.