How to Transfer Your Home Loan
Bangalore: Do you keep a watch on the changing interest rate on home loan? Actually, you must do that; it will give keep you updated about the prevailing interest rates in the market and you can later compare them with the rate charged by your banks. If other banks are offering lower interest rate than your bank, then transferring your loan to a new bank will help you save enough money on loan interest. BankBazaar.com has come up with vital information which you must know about home loan transfer (also known as refinancing or balance transfer).
How Does the Process Work?
For transferring your home loan from one bank to another, you would be required to submit a letter to the existing lender requesting a loan transfer. Depending on your request, the bank will provide a consent letter / No-Objection Certificate (NOC) and a statement mentioning the outstanding amount. After receiving all these documents from your old bank, you must hand it over to your new lender, who then sanctions your outstanding loan amount to be paid to your old lender for closing your account. Once all these transaction are completed, your property documents will be handed over to the new lender, and the remaining post-dated cheques/ Electronic Clearance Service (ECS) will be cancelled.
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