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India, in today’s date is quite well accustomed with the word ‘loan’. Today we have embraced this concept which has made our life easier & dreams much more achievable.

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Home Loan Balance Transfer

Home Loans Mumbai

When a person takes housing loan from a bank or home finance from different finance corporations, like LIC housing loan, DHFL home loans etc., he has to pay a certain rate of interest. But many a times after some years we feel that the interest rate of our loan is higher compared to some other organization or the present rate of interest have fallen down & we are paying a higher rate than the present market rate. Previously in such situations we actually had nothing to do other than keeping on paying the higher interest & sighing away, of course. But now with the facility of home loan balance transfer/home loan refinance, we can easily bring our present interest rate down.


Home loan balance transfer means refinancing your current home loan. Suppose you have taken a home loan from one bank and now you’re planning to go for a balance transfer of the same. What happens here is that you’re outstanding loan amount is repaid by your new lender. It’s no more your obligation or liability to repay your home loan amount. All you need to keep in mind is whether you’re saving enough after all the deductions and pre payment penalties are cleared. Once it shows a green signal on this front you can go forward with your plans to opt for a refinance.

LIC home loans provide lowest interest rate in the market at present. So, a person who is paying a hefty interest to some other bank may transfer his current loan to LIC housing finance & enjoy a lower rate of interest for the rest of the tenure.


  • From the current home finance company, seek a foreclosure letter, list of property documents & statement of account
  • Choose a home finance company carefully & apply for loan with income & identity documents.
  • Credit appraisal by the new lender
  • Get the offer letter from new lender.
  • Submit all required legal documents
  • Valuation of Property ( also known as Technical Check)
  • Submission of post-dated cheques & signing of agreements
  • Disbursement of loan


Now, why would you want to go for such a complicated procedure? Of course, the rewards have to be high enough!

  • Want to get a top up loan on the value of your property? Well, worry not! Home loan balance transfer is here! Use the appreciated amount of your home to your advantage and get a top up loan on that as well.
  • If lowering the interest rate on your home loan amount is your purpose then refinancing is the right choice for you.
  • Are you looking for an extended period of repayment? If yes, then a home loan balance transfer may just be solution you were looking for.


Home loan balance transfer in Bangalore is a very popular concept. The market is so competitive that all the banks & home finance companies are offering attractive deals for switching home loan. In such a scenario one has to be very careful regarding taking the decision because there are lots of hidden clauses which may later prove the deal to be unworthy.


Just like the home loans is Mumbai, approvals for home loan balance transfer in Mumbai is also very tough to get. A person should have a monthly income of at least Rs.15000 & the residential locality of the person plays a major role.


Just like home loan, the interest payable on home loan balance transfer/home loan refinance is also subject to tax deductions.

So, now no need to just sulk over past mistakes. Not sure about life, but our loan providers are definitely giving a second chance!!!!!!