Want to know the documents required for a balance transfer? Here’s a comprehensive list
✓ Home Loan Balance Transfer Facility ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.50%
To transfer your home loan to another lender, you must meet the criteria set by your new loan provider. Once the requirements are met, you are required to submit a set of documents to initiate the process. These act as proof of your eligibility for a balance transfer. Having these documents handy makes the transfer process seamless and quick.
Before you apply for a balance transfer, here are some documents you need to acquire from your current lender:
Letter of consent
It is a document that allows the lender to proceed with specific activities like loan processing. The letter must be signed by you for it to be valid.
Foreclosure letter
It is a letter provided by the lender which states that the loan is fully repaid and that the account has been closed
No objection letter
A letter from your lender which states that they have no objection in transferring the loan after full repayment
Property documents
These are legal papers that act as proof of ownership for the property submitted as collateral
Home loan statements
A document provided by the lender which provides a detailed account of the loan’s balance, repayment history, and so forth
Post-dated cheques
These cheques, used for future EMI payments, need to be withdrawn once the loan is closed. This helps you avoid unnecessary deductions.
You need to submit the following documents to your new lender when applying for a balance transfer:
Proof of identity like PAN card or Aadhaar card, etc.
Proof of residence like utility bills, property tax receipts, etc.
Last 6 months’ bank account statements
Latest passport-size photographs
Property-related documents like sales deeds and so on
Documents related to your current home loan
Income proof:
For salaried individuals - The latest salary slip of the previous 3 months or Form 16
For self-employed individuals - Audited profit and loss statements
Your lender may ask you to submit some extra documents before approving the transfer. It is essential to get a complete list of the paperwork needed from your new lender prior to applying. This will help avoid any delays and hurdles during the application process.
Frequently Asked Questions
What is the maximum limit set for home loan balance transfer?
The maximum limit is equal to your outstanding home loan amount.
If my existing credit score is not good, will that affect the transfer process?
Yes, credit score plays a crucial role when transferring your loan to a new lender. Both the score and credit history have to be good to initiate the process.
How can I know the income criteria set by a specific lender?
You can contact your preferred lender to understand the minimum income criteria. For example, while some lenders insist on a minimum monthly income of ₹20,000, others insist on ₹25,000. Your city of residence also plays a crucial role when deciding the income parameters.
Do I need to submit the existing loan documents when opting for the home loan balance transfer?
Yes, along with other documents, you must submit all relevant documents related to your existing loan to the new lender. This helps the lender understand all the details related to your home loan.
