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Stuck with a home loan with a high interest rate? No need to worry, opt for an SBI Home loan transfer and reduce your EMI considerably. If you have a home loan from any private bank, scheduled bank, commercial bank, or housing finance bank which is registered with National Housing bank, you can opt for an SBI Home loan Balance transfer.
For SBI Home Loan Transfer, you can visit the nearest SBI branch or opt for online SBI mode. The State Bank Of India has facilitated a large number of home loan borrowers to transfer their home loans with SBI without any processing fee.
SBI Home loan transfer is the best option for those who couldn’t do their due diligence before availing of the loan and now paying a high interest rate. Later they understand the better loan offers, in such situations, a home loan balance transfer is the best option.
Benefits
Eligibility
Documents Required for SBI Home Loan Transfer
Home loan EMI in Pandemic
With the unanticipated threat posed by the second wave of COVID-19, we all are facing adverse colossal impacts in our life.
To control the spread of COVID-19, the government was compelled to declare a lockdown leading to the loss of many jobs.
People, who are servicing the home loan have additional worries of paying EMI along with protecting themselves from COVID-19.
People are under utter pressure owing to economic calamity along with pandemics. The government and many organizations are providing several offers to the borrowers to manage their finances and equated monthly installments. We can manage EMI by opting for the best options as per our requirements.
How to escape from being a Home loan defaulter?
If income sources adversely disrupted due to pandemic
Opt for EMI Moratorium
It is better to opt loan moratorium if you are not able to pay your home loan EMI. Moratorium can’t be considered as an EMI holiday because you have to pay your EMI amount with interest later.
It only provides you the relaxation from being categorized as a defaulter, and it will not make any impact on your credit score.
It is at the discretion of your lender to decide the rate of interest to be charged on the deferred payment.
Loan Restructuring
The pandemic has compelled several borrowers to opt for the moratorium to avoid default in loan repayment. But the crisis is not over yet, alternatively, the reserve bank of India has permitted the banks to allow loan restructuring options to their borrowers. So, the borrowers can now be allowed to extend the repayment period along with the reduction in EMI size. This is entirely at the discretion of the lender.
Manage funds from other sources
Most of the saving instruments such as Fixed Deposits, Recurring deposits, etc are providing interest rates a lot lower than the interest you are paying for your home loan. Therefore, it is advisable to use your funds in repaying your home loan. You can also take out money from equities and mutual funds to pay your EMI because the stock market is also very volatile and not delivering good returns or we can say returns are lesser than the interest paid for availing home loan.
Use Provident Fund
You can also use withdraw from your provident fund accounts, as Employee’s PF organization is offering a facility of withdrawal of non-refundable advance money to support its members in the crises caused by the second wave of COVID-19. An employee can withdraw the amount equivalent to the basic salary and dearness allowances for three months or up to 75% of the balance in their account, whichever is lesser. It is the best way to manage your home loan EMI for few months, in the meantime you can find look for some alternate sources of income.
Reduce Interest rate burden
Keep looking for a lower interest rate, you can also negotiate with your existing lender and you can also refinance your loan at the lower interest rate. A lower interest rate will reduce the EMI burden or reduce the tenure of repayment.
Managing your funds prudently can save you from the crisis loan repayment. Explore the options suitable to you for managing funds for paying home loan EMI.
A home loan is the amount of money borrowed to purchase or construct a home by an individual. Generally, the home loan is taken from banks, housing finance companies, or non-banking financial institutions at a certain rate of interest to be paid in equated monthly installments within a specified time.
The money lending company takes the property as security against the loan and has legal rights to recover the loan amount by the sale of the property if the borrower doesn’t pay back the due amount.
Types of loan
To cater to the varying housing requirements, different types of home loans are available in the market. A person can choose the home loan as per his requirements and affordability.
Home purchase loan
An individual can take this loan to purchase any type of residential unit such as an apartment, villa, raw houses, etc.
Home construction loan
Such type of loan can be taken by the landowner to built or construct your new house.
Top-up home loan
This type of loan allows borrowing some more amount of money above the outstanding loan amount.
Home improvement loan
This type of loan can be availed to renovate, repair or refurbish your home.
Home extension loan
This loan can be availed to meet the requirement of your growing family. You can add some more space to your existing home by constructing additional rooms or another floor.
Land purchase loan
An individual can avail of this loan if he wishes to buy a plot to construct his own home or for investment
NRI home loan
Non-resident Indians can avail of this loan for the construction or renovation of the home in India.
Balance Transfer
A balance transfer can be availed by a borrower who wishes to switch an existing home loan from a money lending company to another company for a lower rate of interest and better terms and conditions.
Bridge Loan
Such type of loan helps the individual who wishes to purchase a new home by selling off the existing property. Through this loan, you can make the down payment for the new property till the old property is sold off. Bridge loans have a maximum of up to two years of tenure.
Click to know more: Benefits of Home Insurance, Mortgage loan meaning in Hindi, Personal Loan in Delhi, Advantage of Project Finance, Loan Against Property in Delhi
Home loan interest rate
In India, home loans are offered at a fixed and floating rate of interest.
Fixed-rate of interest remains constant throughout the loan tenure.
The floating rate of interest varies from time to time depending on the changes in government rules, RBI policy, supply of money, etc.
Currently, the home loan rate is varying between 6.7% to 6.8%. The interest rate also depends on your credit rating. If your credit score is high, you will be able to borrow at a lower rate of interest.
Prepayment of home loan
Prepayment of housing loan refers to partial or full payment of home loan before the completion of the tenure.
The borrower has to pay prepayment charges that usually vary between 2% to 4% depending on the lending company. The borrower can also opt for foreclosure.
Retrieve your original papers after prepayment of loan and take the acknowledgment of the same mentioning all the details of the prepayment.
The information contained in this website is for general information purposes only. The information is provided by Velocity Propbuild and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose.
