The loan industry is undoubtedly a competitive one, and the big companies often come up with very lucrative offerings to pull more and more people towards them. Now, it is pretty evident that you’ll be more inclined towards the company that offers you more benefits and is cost-effective. This is why a home loan transfer takes place.
However, people generally opt for financial loans to ease the burden, as going all in at once is tough as it disrupts the finances. So, they choose the one that benefits them in monetary terms.
What is a home loan?
Also known as a Mortgage loan, a home loan is a type of loan used to purchase a house. Factually, the borrower is supposed to put down a percentage of the total cost of the property as a down payment, and the lender then provides the remaining amount needed to purchase the house. Then, the borrower repays the loan by paying EMIs each month at an agreed rate of interest and tenure.
The loan can also be used to build a house on your land or for renovation purposes too.
(Note: You’ll gain complete property ownership once the tenure ends.)
What is a home loan transfer?
In simple terms, it is the process of transferring an existing home loan from one lender to another. It is done to benefit from the better interest rate, customer service, and many other factors. This is generally availed by people due to their rising expenditures and inflation.
So, when you go to a new lender, you have to pay some fees, and it will also conduct a credit check before approving the transfer. Therefore, ensure to review the terms and conditions of the new loan carefully and first compare it to the existing loan. If it is beneficial, you should make the right choice.
What are the things to consider before transferring your home loan?
In order to transfer a home loan, the first step is to download the home credit instant loan app. From my personal experience, when I was planning the loan transfer, my colleague told me about the Bajaj Finserv application. Believe me, this app is relatively easy to use, and I could avail of the loan here with just a few taps on my smartphone while sitting at home.
Rate of Interest
It is essential first to compare the rate of interest between your old lender and the upcoming new lender. Ensure that the new one is lower as only it will result in significant savings over the tenure.
As mentioned above, the new lender will conduct a credit check first. So, be aware of your credit score and any outstanding debts.
This factor might look like a small one but believe me, it is very important. Often, bad customer service pushes the client somewhere else.
Take into consideration the repayment tenure offered by the new lender.
However, all-in-all, if you are planning a loan transfer, just download a home credit instant loan app, and you can access everything from your smartphone easily.