Home Loan Balance Transfer

Which is More Beneficial – Home Loan Balance Transfer or Top Up Loan

By: ksalu

Picture this! You recently moved into your new home, an abode of your dreams with the help of fund assistance in the form of a Home Loan. There were no issues as you were paying the Home Loan EMIs without issues since the terms of the loan seemed feasible.

One fine day, you switched on the TV to find that Home Loan interest rates have reduced and a particular lender was offering it a reduced rate than yours. Knowing that an affordable Home Loan is already available and you are paying more, you felt disappointed.

If you are stuck in a similar situation, you need not worry as you can still enjoy a lower Housing Loan rate even after you have an ongoing.

Yes, there is a facility called Home Loan Balance Transfer which can help you enjoy a lower Housing Loan interest rate, and for that, you will need to pay a conversion fee.

What is a Home Loan Balance Transfer?

If you have taken a House Loan from a lender and wanted to enjoy better interest rates, you can switch your loan account from one lender to another. Yes, every brand wants good customer and finance industry is no exception. Lenders keep looking for borrowers with a good repayment record and welcome them with a Home Loan transfer. To switch from one lender to another, a borrower needs to pay some conversion or processing charges to his/her existing lender.

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However, a borrower should also review if the processing charge for the conversion is more than what you will save if you switch your loan accounts. If you find the charges more, there is no point in opting for a Home Loan balance transfer.

When you enrol in a Home Loan transfer scheme, you not only end up availing a lower interest rate but even begin to pay lower EMIs. As a result, the cost of your Home Loan diminishes and you end up saving money, overall.

What is a Top Up Loan?

A Top Up Loan is nothing but an extra loan offer that’s available to lenders who go for a balance transfer. When you apply for balance transfer, leading online lenders can offer you a Top Up Loan to cover your other needs.

You are free to utilize a Top Up Loan for purposes such as marriage in the family, medical emergency, vacation, for debt consolidation and other personal tasks.

Prominent banks and non-banking finance companies (NBFCs) may offer you a higher Top Up Loan amount of up to Rs.50 lakh. They offer you a Top Up Loan at a reduced rate and a longer tenor to make it an affordable deal for all. What’s more, the documents required are also negligible, and there are no hassles if you wish to avail it.

It’s also not necessary to apply for a Top Up Loan when you switch your Home Loan account to another lender. You are free to apply for it anytime during the tenor of the housing loan.

Thus, whenever you face some money hurdles, you have a top-up loan to cover your needs super-easy!

The Bottom Line

If you are a Home Loan borrower and paying higher Home Loan interest rates, you can always avail a Home Loan transfer facility and enjoy an affordable rate.

Also, if you are thinking whether opting for a Home Loan balance transfer and a Top-up Loan is beneficial, your confusion should be clear by going through the above discussion!

Why pay more when you can reduce the cost of your Home Loan and enjoy lower EMIs? Yes, opt for an online Home Loan balance transfer and Top Up Loan today!   


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