Applying for a home loan is one of the most challenging decisions in life. A home loan welcomes you into the world of liabilities. Although the ultimate goal is quite noble, which is getting your personal shelter, it can burden you financially for a considerable time. Hence, selecting the principal and the EMI (Equated Monthly Instalment) is crucial to making a sensible choice. Here is where an EMI calculator comes into the picture. An EMI calculator offers excellent insights into the net liability arising from a home loan to help you make an informed decision. Read on to know about the best features of the PNB Housing EMI calculator and how to use it for getting accurate results.
Many of us have to take a home loan in order to make our dream house a reality. Moreover, once we do settle on a loan, we come across better housing loan options: for example, another financer providing housing loans at lower interest rates or with extra benefits. There is no need to worry in such cases. You always have the option of transferring your loan to the other lender.
Before getting into the steps involved in home loan balance transfer, it is important to carry out some research of your own. For this, you can visit the websites of different banks and financial institutions and check all the terms and conditions applicable, along with the respective processing fees.
Once you are satisfied with the terms and conditions and you can conclude that you are receiving a better offer in one place than the other, you can apply for a home loan transfer.
Here are the Steps Outlined for a Home Loan Transfer
Inform the present lender:
Firstly, you need to inform the current lender that you want to transfer your loan. This can be done either by writing a letter or filling out an application for the same.
Obtain the No Objection Certification
The next step is to obtain a no-objection certificate (NOC) from your current lender. This NOC needs to be given to the new lender without which the transfer will not be initiated.
Contact your new lender and find out the documentation that you need to submit to them. You may need to submit documents for a KYC, along with your loan statements, interest statements, and title deeds. Make sure that you have them in order and you submit them promptly. The new lender will now pay off the balance due to your old lender.
You need to obtain confirmation of the closure of your loan account from the old lender. This means that your loan contract with the old lender has come to an end and you need to submit the required documents to the new lender.
Enter a New Contract
The next step is to enter into a new contract with your new lender. During this step, you need to pay the required loan processing fees and documentation charges.
All documents also will be handed over to the new lender, thus officially completing the process of home loan transfer. Once this step is complete, you can start paying your EMIs to the new lender.
Before deciding to transfer home loan, one must take into consideration the additional fees such as loan processing charges, balance transfer fees and the rate of interest being charged by the new lender. Only if all these taken together is cheaper than the current loan plan, the decision of transferring your home loan must be taken.
So, stay on the look out for better loan options and make that dream house of yours that much more affordable!