A Balance Transfer of Loan Against Property is a process of transferring an existing Loan Against Property from one lender to another. The main aim of balance transfer is to obtain a better interest rate and more favorable terms on the loan.
Here are some key features of a Balance Transfer of Loan Against Property:
- Current Loan: An individual must have an existing Loan Against Property from a lender to be eligible for a balance transfer.
- New Lender: The individual can choose a new lender who offers a better interest rate and more favorable terms on the loan.
- Interest rate: The interest rate on the loan is usually lower with a balance transfer as compared to the interest rate offered by the previous lender.
- Tenure: The loan tenure can be extended or reduced based on the agreement between the borrower and the new lender.
- Processing fee: A processing fee is usually charged by the new lender for processing the balance transfer.
- Documentation: The individual must provide the necessary documents such as property papers, income proofs, and previous loan details to the new lender for processing the balance transfer.
- Repayment: The individual must continue to repay the loan as per the terms and conditions agreed upon with the new lender.
A Balance Transfer of Loan Against Property is a suitable option for individuals who have a high-interest rate Loan Against Property and are looking to reduce their monthly payments. It is important to carefully compare the terms and conditions, interest rates, and processing fees of different lenders before opting for a balance transfer.