Individuals looking for ways to reduce EMI on property loans can opt for a loan against property balance transfer. When individuals take the route of transferring their loan against property, they transfer the outstanding principal amount of an existing loan to another lending institution that offers a lucrative interest rate. This helps to lower the EMI burden and enjoy other benefits associated with it.
The following section discusses the application process for a loan against property balance transfer and important aspects related to it.
Application process of loan against property balance transfer
Here is a step-by-step guide on the application process for property loan balance transfer.
1 – Individuals have to visit the official website of the lending institution of their preference.
2 – Next, they have to fill out the application form with correct details, such as personal and income details.
3 – At last, they have to submit the application form for a loan against property balance transfer. The representatives of the lending institution will connect with them to guide them on the next step and complete the application process.
As individuals are aware of the application process of a loan against property balance transfer, they must know the eligibility criteria and documents required to ensure faster and hassle-free approval.
Eligibility criteria of loan against property balance transfer
The loan against property balance transfer eligibility criteria is similar to the parameters set by lending institutions. Financial institutions offer both salaried and self-employed individuals the facility of transferring property loans from existing lenders to another.
However, the eligibility parameters may vary from one lender to another, depending on the employment status. These are discussed below:
For salaried individuals
- Applicants must be a resident of India.
- The age of the applicants must be between 28 to 58 years.
- The applicant must be employed in a public or private sector company or a multinational organisation.
For self-employed individuals
- Applicants must be a resident of India.
- The applicant’s age must range from 25 to 70 years of age
- The applicants must have a steady income from their business
Documents required for availing loan against property
While applying for a loan against property balance transfer, individuals must submit essential documents. Similar to eligibility criteria, the document requirement also varies depending on the employment status. Here is a list of required documents for a property loan balance transfer,
For salaried individuals
- ID proof of an applicant
- Address proof of an applicant
- Latest salary slips
- PAN card/Form 60 of applicant
- Bank account statements for the last 3 months
- Title documents as required by the legal team
- IT returns
- Copy of the documents of the property to be mortgaged
- Any other documents as asked by a lender
For self-employed individuals
- Address proof of applicants
- ID proof of an applicant
- PAN card/Form 60 of applicant
- Income documents, such as ITR/Financial
- Primary bank account statements for the previous 6 months
- Copy of the documents of the property to be mortgaged
- Title documents as required by a legal team
- Any other documents as demanded by a lender
A loan against property balance transfer can benefit individuals in various ways. Before applying for this option, individuals must know the benefits offered under property loan balance transfer.
Benefits of applying for a loan against property balance transfer
Individuals can enjoy numerous benefits by opting for a loan against a property balance transfer. These are as follows:
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Lower EMI burden
Individuals avail a loan against a property balance transfer facility when they want to secure a lower interest rate on the loan amount. For this, they shift their existing loan to another lender who offers a reduced rate of interest.
This allows individuals to save on the total payable interest amount and total due and ultimately lower EMI. Remember, lending institutions allow individuals to use loan against property EMI calculator even while transferring property loans to calculate EMI instantly. Thus, with a reduced interest rate and online calculators, individuals can manage property loan balance transfer efficiently.
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Sizeable top up loan
While opting for a loan against a property balance transfer, individuals can enjoy a top up loan facility on their existing loan. Lending institutions provide this top up loan amount over and above the sanctioned loan amount.
Usually, lending institutions offer a sizeable top up loan amount that has no end-use restrictions. Thus, individuals can use the money to cover the child’s education, marriage expenses or any expenditure as per their requirements.
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Negotiation power
If individuals have a good repayment record without any payment default, they can enjoy negotiation power with lending institutions to secure lower rates and improved services.
There are various reputed financial institutions that offer competitive rates on loans against property balance transfers.
These financial institutions also extend a pre-approved offer that simplifies the loan against the property balance transfer process. These offers are also applicable to other financial products such as loans against property, home loans, etc. Individuals check their pre-approved offers by entering names and contact details.
With comprehensive knowledge of the application process for loan against property balance transfer, individuals can easily apply for the same and enjoy the benefits offered under it.
