5 Things To Check Before You Transfer Your Home Loan
#3.Fees and penalties
Many banks like ICICI and State Bank of India have completely waived off loan transfers, but some banks still charge borrowers who want to discontinue with their services. Banks charge around 2percent penalty on the outstanding loan balance. In addition, the new bank will also charge a processing fee for its refinancing services. Most banks and house financing companies charge 0.5 percent of the loan amount as processing fee.
#4.Cost-benefit analysis
Cost benefit analysis is the safety valuation of the risk of performing a task. And working up cost-benefits analysis will help you decide which will be best for you. And a cost-benefit analysis doesn't have to be complicated.
#5. Right time for a shift
It is always better to switch the loan during the initial years. You can go with the bank of your choice. While making the request, you can decide the balance on your home loan, reduce EMI or reduce tenure and the process differs from bank to bank.
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