Choose Home Loan Balance Transfer for Lower Interest Rates | Kotak Mahindra Bank - Home Loan Stories

26 OCTOBER, 2021

Sure, a home loan helps you buy your dream house, but it is a significant financial commitment, which can affect your finances. Even a small change in the interest rate can bring a substantial difference in your overall cost of borrowing. In such a scenario, it could be frustrating to pay a home loan with a higher interest rate, where a lower interest rate home is available in the market. Thankfully, you have the option of a balance transfer. With Kotak Mahindra Bank, you can switch your loan for a lower interest rate and save money. Read on to know more.

What Is a Home Loan Balance Transfer?

A home loan balance transfer is a process through which you can transfer your loan for lower interest rates or better facilities and deals. The new lender repays your existing loan allowing you to repay the remaining EMI’s to them as per their interest rates. You can also get the benefit of a top-up loan and overdraft facility by switching the loan.

Why Switch to Kotak Mahindra Bank with a Home Loan Balance Transfer?

  • Simple process

To opt for home loan balance transfer from Kotak, you simply have to fill in the application form with your details and click on apply now. The process is digitized and you can complete the entire process online without visiting the branch.

  • Competitive interest rates

We at Kotak, offer one of the lowest home loan interest rates in the market. If you have a high credit score and good repayment history, you can transfer your loan to Kotak and get an interest rate as low as 6.50%.

  • Easy Eligibility criteria

With easy eligibility criteria, anyone can opt for a loan balance transfer with Kotak. You can easily opt for a housing loan balance transfer with us if you have a high credit score, stable job profile and meet all eligibility criteria. 

Documents Required

When you switch the loan, you would need to furnish the following documents -

  • Identity proof
  • Address proof
  • Income documents
  • Property documents

Things to Note before Switching Your Loan

  • Avoid opting for a home loan balance transfer in the later years of the loan tenure when you have paid almost the entire interest component. Switching your loan in the later years could cost you more than you save on the loan.
  • Do a cost-benefit analysis to determine the savings you would make. You can use a home loan EMI calculator to calculate your savings.

While you opt for a loan balance transfer ensure that it helps you save money.  The interest rate difference should be substantial and should be more than the cost of the transfer. Similarly, you should also check the remaining EMIs and interest component of the total outstanding amount.

So, wait no more. Switch to Kotak Mahindra bank home loans and save money.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.