In this growing economy, every sector has its competition. One company is trying to edge out the services offered by another company. Consumers today are spoilt for choices. If one brand makes you unhappy you may easily shift to another one. Similarly, in case of a home loan, if you are unhappy with the repayment terms, rate of interests, services or wish to switch to a better lender, you may do so conveniently. You deserve convenience, affordability, feasibility, and assurance while building your future and investing in your home.
The process of switching lenders for your home loan is called home loan balance transfer. Transferring your home loan balance to a different lender might be overwhelming. It is because you may be unsure if it is the right decision to make or if you could end up taking a costlier loan. To save you from such hassles, a Home Loan Balance Transfer Calculator comes in handy.
Let us understand what it means in brief.
Home Loan Balance Transfer Calculator
A home loan balance transfer is usually done if there has been a major change in the interest rates. It helps the borrower to enjoy lower EMIs. If you have a high outstanding amount, it is advisable to switch lenders for a better deal. To help you with the same, using a balance transfer home loan calculator is advisable.
To understand the amount you are saving up on your EMIs, and overall loan, you will need to furnish some data that is unique to you. The calculator will need a few details or specifications required for calculating your new EMI and your total savings, some terms used by the calculator that you will come across will be as below:
1. Outstanding Principal Amount
The principal amount you took up as a loan needs to be mentioned. It helps to calculate the new EMI and further terms.
2. EMI Payment-
The current equated monthly instalment (EMI) you are paying to your existing lender needs to be mentioned.
3. Pending term-
Out of the total agreed term, the remaining term for which instalments are due is required to be mentioned.
4. Interest factor-
The new lender’s chargeable interest rate shall be mentioned.
5. Term requirements-
When taking up a balance transfer loan, you can reset the terms. It means you can change the repayment term or tenure of the loan
.
Once you feed this data to the home loan balance transfer calculator, you will derive the new EMI that will be charged along with your total savings.
Eligibility for Home loan Balance Transfer
As a home loan is a long-term liability, the eligibility depends on the person’s age, income, and other such factors. You can apply for the same by submitting the lender’s requested documents
. Having all your documents in place can make the process a smooth one. While switching lenders, ensure that you foreclose your old loan and receive all the important documents. Please also note that foreclosure for the sake of home loan balance transfer will attract foreclosure charges from most lenders.
Home Loan Balance Transfer: Interest Rate
When you transfer your home loan to us, you can get an interest rate as low as 10% per annum* if you are a salaried employee. If you are self-employed, the interest rate starts from 11% per annum*. Here is an overview of the interest rate and different charges you can expect.
| Interest Rate |
10% per annum* for the salaried; 11% per annum* for the self-employed |
| Type of Interest Rate |
Floating interest rates |
| Maximum Amount Allowed for Home Loan Balance Transfer |
Depending on your eligibility, the maximum amount could be the balance on your outstanding loan, or a top up on your existing loan |
| Processing Fee |
Up to 3% of the loan amount |
| Interest Rate Conversion Fee |
1% of the loan amount |
| Application Fees |
|
| Documentation Fees |
|
Documents Required for Home Loan Balance Transfer
The document requirements for a Home Loan Balance Transfer include proofs for identity, income, and residence. Please note that the requirements vary slightly for salaried and self-employed applicants.
Proof of Identity:
- PAN card
- Voters ID
- Driving license
- Employee card (for salaried employees)
Proof of Income:
- Salaried Employees:
- Last 3 months’ salary slips
- 2 years’ Form 16
- 6 months’ bank statement with salary credits
- Self-employed Individuals:
- Last 2 years’ ITR with computation
- CA audited financial wherever applicable
- 6 months primary bank statement
Proof of Residence:
- Aadhaar card*
- Latest electricity bill/piped gas monthly bill
- Ration card
- Property tax / water bill
Documents related to the property will also be requested.
*Please note that Aadhaar numbers should be masked before submission as per regulatory guidelines.
Benefits of the Home Loan Balance Transfer Calculator
A Home Loan Balance Transfer Calculator gives you several advantages such as:
- You can estimate your potential savings through the transfer and also lets you know the amount you may be eligible for.
- Using the calculator, you will have a realistic picture of your expected repayment tenure.
- It saves you the time and effort involved in conducting multiple queries for understanding the EMI amounts and the cost of the balance loan.
Conclusion
Looking for a lender that suits your unique requirements? Home Loans from SMFG Grihashakti come with lower interest rates, better terms, and enhanced services. Opt for a Home Loan Balance Transfer, today.
FAQ's
Who should use a home loan balance transfer EMI Calculator?
A Home Loan Balance Transfer EMI Calculator should be used by anyone who is looking to transfer their loan from one lender to another. It will give them an estimate of the EMI amounts and the potential savings after the balance transfer.
Can you calculate savings using a Home Loan Balance Transfer Calculator?
Yes. A loan refinance calculator compares the terms of the current loan against the new loan you may be thinking of. It will give you an estimate of the difference between the interest costs, monthly payments, and the overall cost of the loan.
What is a home loan balance transfer EMI calculator?
A Home Loan Balance Transfer EMI calculator is a useful tool for those wanting to transfer their existing balance to a new lender. The transfer is usually to get more flexible terms such as lower interest rates, lower EMIs, and so on. The calculator can help you get an overview of the potential savings you can expect after the transfer, the repayment tenure, the interest rate, and so on.
Does a home loan balance transfer affect credit score?
Yes, a Home Loan Balance Transfer can affect your credit score. The transfer can be viewed as a new loan by credit bureaus. This can lead to a hard inquiry which may temporarily lower your score. However, keeping up with timely payments, not using too much of the new credit, and not applying for multiple loans in a short time will help you negate any drops in the score.
When should you consider a home loan balance transfer?
You should consider a Home Loan Balance Transfer if you stand to get better loan terms such as lower interest rates, lower processing fees, more flexible repayment options, etc. You can even consider a transfer if your credit score has improved since taking the original loan. A strong credit history may get you better terms with the new lender, depending on how well you fit other eligibility criteria.
How much money will I save if I opt for a Home Loan Balance Transfer facility?
The amount of money you will save will depend on several factors such as the difference in interest rate, the new loan tenure (a longer tenure will reduce EMI cost but can increase the total cost of interest), processing fees, and so on. You can use a Home Loan Balance EMI calculator to experiment with different loan tenures, interest rates, and other required inputs to get an estimate of the savings.
Disclaimer: *Please note that loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms and disbursal process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.