What are the RBI guidelines for Home Loan Balance Transfer?
For a home loan balance transfer, according to the RBI rules, banks, and money lending companies cannot charge any home loan fees. The home loan balance transfer helps a borrower to move to another lender better home loan rates than the present lender, if he or she fulfils their home loan eligibility criteria.
The balance transfer option involves foreclosing the current home loan and taking a new home loan for the due principal amount. A borrower can opt for a new loan with the charges waived on foreclosure of floating rate loans. However, some banks may charge a pre-payment penalty varying from 1%-3% on fixed rate loans. Use the home loan eligibility calculator to check your eligibility for a home loan transfer with Bajaj Finserv.
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