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Home loan balance transfer is a process through which you transfer the remaining amount of your home loan from the old lender to the new one. This is a beneficial practice, as when you balance transfer home loan, you get a lower rate of interest than the one charged by your previous lender. This reduces the overall burden.
Home loan transfer is available to anyone who is an Indian resident, but here’s a catch, you have to fulfill certain eligibility criteria. These criteria include:
● The age of the applicant
● The income
● Educational qualification
● Financial standing, etc.
You can easily check your eligibility with Kotak Mahindra Bank’s home loan balance transfer calculator.
A home loan top up is a financial assistance given to you by your bank or lender above your existing home loan transfer. With a home loan top up, you can fulfill your other financial needs, like renovation or refurbishment of your house. The benefit of such loans is that they have a lower interest rate and longer tenure than personal loans.
The interest rate is one of the most salient features of a home loan balance transfer, also known as home loan refinance. It is considerably lower than the one charged on a home loan. The lower rate of interest decreases the overall EMI which in turn reduces the financial burden.
There are two important criteria that you have to fulfill if you want a top up loan:
● The first one is that you have to have a home loan with a lender
● The second one is you have to show a satisfactory repay record for at least 1 year
Kotak Mahindra Bank offers you get following loan amount:
● For a loan amount of Rs. 20 to Rs. 75 lakhs you are eligible for a loan of up to 80% of the cost of the property
● For loan amounts above Rs. 75 lakhs, you are eligible to borrow up to 75% of the cost of the property
Opting for a home loan can often be taxing. It can put a burden on your finances. So, it’s a good idea to switch to a home loan balance transfer. They come at a lower interest rate than you pay your existing lender, which, in turn, reduces your monthly EMI and boosts your financial health.
Through the home loan balance transfer process, you transfer your outstanding loan amount from your existing lender to a new lender. It has its own benefits. It offers better terms with a lower interest rate. This, in turn, results in a reduced EMI, which eases the financial burden. You can also avail of a top up loan on your existing loan.
Any applicant who has an ongoing home loan with a lending institution can apply for a home loan transfer. However, the person has to fulfill certain eligibility criteria. This depends on:
● The income
● The age of the applicant
● Educational qualification
● Financial stability and more
You can also check your eligibility with Kotak Mahindra Bank’s home loan Eligibility calculator.
Often, while deciding on the disbursement of a loan, the bank asks the applicant to assign a guarantor. This guarantor is the bank or lending institution’s fail-safe to ensure proper repayment in case the applicant fails to do so. However, it is not mandatory to assign a guarantor while applying for a home loan balance transfer.
There is a tax benefit according to section 24(B) when you avail of a home transfer loan, but it is only granted only if you avail of a top up loan. According to this section, you get a maximum exemption of Rs. 30,000 on the interest paid for a top up loan per financial year.
Yes, with Kotak Mahindra Bank, you can use a home loan balance transfer and top up your existing loan to get ready cash. You can use this ready cash you can fulfill any and all of your financial needs. It can be anything. Be it home renovation, home refurbishment, or anything else.
If you are an NRI and are looking for a Home Loan, Kotak provides you just that. Check out our NRI Home Loans section.
If you are looking for renovating your home, you can do so by taking Kotak’s Home Improvement Loans
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