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.
29 NOVEMBER, 2021
Home Loan is usually a substantial liability for most borrowers. But even more worrisome is watching others pay lower interest than what you're paying on your home loan.
There could be many factors for the difference in the interest rates, like credit score, eligibility, etc. However, it could be frustrating to pay a higher interest rate just before there is a drop in the home loan interest rate. In such a situation, you can switch your home loan. Lenders allow you to transfer your home loan to another lender for better interest rates and services.
Following are the amazing benefits of transferring your existing home loan to Kotak Mahindra Bank.
The interest rates at which you are servicing the home loan significantly impacts your cost of borrowing. By transferring your home loan, you can get a lower interest rate and thus save money. At Kotak, you can get a home loan at an unbelievably lower interest rate of 6.5%. Due to the quantum of the loan amount, even a small difference in the interest rate can help you save a substantial interest cost.
Reduced interest cost means lower equally monthly installments (EMI). By switching the loan to a lower interest rate, you can reduce your EMI and overall cost of borrowing. Getting a lower EMI can also help you pay off the loan faster. You can use a home loan balance transfer calculator to understand the effect of a lower interest rate on your EMI.
If you are not satisfied with your home loan lender, you can get better services by switching to a new lender. With us, you can get quick approval and disbursal, doorstep facility, relationship manager, minimum documentation, and in-principal approval. You can also talk to our home loan expert and get answers to your queries.
When you switch your home loan, you apply for a new loan with another lender. This allows you to negotiate the loan terms. You can get lower interest rates and can even change your tenure. You can restructure your home loan to get a tenure that is financially viable for you.
You can get added facilities on your home loan by switching the loan. For example, with us at Kotak Mahindra Bank, you can get a top-up loan over and above your home loan. With a top-up loan, you get additional funds that you can use for your personal needs or for furnishing your home. If you are eligible, you can also get an overdraft facility by switching a home loan.
The facility of a home loan balance transfer can help you restructure your loan and save money. However, you must carefully analyze the cost associated with the transfer. It would be best to do a cost-benefit analysis before you switch to ensure that you do not pay more than you save.
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