Switch your Home Loan Easily with these Steps

Posted by Anamika Verma
July 12, 2017

Self-Published

There can’t be anything as important as a good, safe and secured house. Most people dream of a house which they can call their dream house. But buying this dream house can be expensive. Financing a dream home can be only possible through a Home Loan.

Many banks help people buy their dream house by providing them with Home Loans. But Home Loans necessarily come with interest rates. Now interest rates of different banks vary and they depend upon the loan tenure as well as the loan amount. Some banks may charge you with a high rate of interest on Home Loan whereas some may charge you lower.

While choosing a bank you should be very careful in choosing, as a wrong bank may lead you to pay a huge amount of interest. It’s important that you make a list of banks and its Home Loan interest rates when you are deciding which bank to opt for.

home loan

Maybe if you have already taken a Home Loan and are thinking of switching it to another bank because you have an interest rate of 12 percent or 10 percent per annum which you can’t afford paying. Switching a Home Loan is totally ok and many people do go for it.

After the demonetization, the interest rates have been lowered down. If you have borrowed a loan before demonetization it’s obvious that you have to pay more interest rates than others who borrow loan after demonetization. Most of the banks charged 9.50% of interest before demonetization which is lowered now.

Switching the Loan

One of the most important aspects to take into consideration while opting to switch the loan is that you should be well versed with the existing interest rates in the market. Various banks offer a rate of interests which differ from one another. Thus you have to do a fair research on this subject.

When you talk about switching the loans one has to understand the benefits that come with it. For instance, if you have applied for a loan of INR 10 lakhs and you are to repay that in 3 years with the rate of interest at around 10.5% you will look for a bank which is providing you the same tenure at a lesser rate of interest say 9.5%. Thus in a long run, it will help you save thousands of rupees and in some cases even lakhs depending upon the tenure. Usually, housing loans have a long tenure and can be extended to up to 30 years.

Thus when considering to transfer Home Loan there are several things you should know about the transfer charges, remaining tenure of the loan, long term benefits of new rates versus the old rate. One should take into account all these points and then focus on switching the loan. If you are looking forward to switching from a private bank to a nationalized bank, note that any loan, be it a house loan, education loan or personal loan can be switched from one institution to another.

Last but not the least one of the most important points is that one should stay up to date with the financial schemes being provided by the banks and the new policies that are being introduced. Remember that the decision to switch the loan has to be based on more than just one factor. Eventually, your calculations will either lead you to a safe place or make your life difficult. Hence evaluate every factor and accordingly decide on switching.

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