The Home Loan Balance Transfer Process comes packed with several benefits. It helps you transfer your outstanding loan amount from your current lender to a new lender with lower interest rates and better terms. It also offers a transfer of your home loan to another bank to avail a top-up loan on your existing loan.
Anyone who fulfils the specified criteria stipulated for home loan refinance is eligible to apply. Your eligibility depends on your income, age, etc. Kotak Mahindra Bank’s home loan eligibility calculator is a simple way to determine your eligibility.
A guarantor becomes a safety net for the applicant in case they default in repayment of the home loan balance transfer. However, there is no mandatory requirement for a guarantor.
According to Section 24b of the Income Tax Law, tax incentives can be granted for the transfer of housing loans, but only if you avail a top-up loan. A borrower can avail a maximum exemption of Rs. 30,000 on the interest paid for the top-up loan per financial year.