Many individuals do not research properly before availing a loan from a lender which results in them paying high interest rates. However, one can opt for a loan against property balance transfer facility to save a lump sum amount on their existing home loan. It allows individuals to easily switch to a lender that offers much lower interest rates as well as various additional advantages. Here a borrower can learn in detail about this process.
How to improve finances with a loan against property balance transfer?
To enhance their finances with a loan against property balance transfer an individual should consider the following points:
- Negotiate with the current lender for a lower interest rate and longer repayment terms to see if they can offer better terms.
- Use a loan against property EMI calculator to estimate the potential savings from a balance transfer.
- Borrowers must review their credit reports and take the necessary actions to improve their credit scores before applying for a transfer.
- Be aware of and understand all the associated property loan balance transfer charges to avoid hidden costs.
- Monitor fluctuations in interest rates and consider switching from a floating interest rate to a fixed rate or vice versa.
- One must assess the timing of their balance transfer at the early stages of repayment, to enjoy low interest rates and extended tenures.
What are the different advantages of a loan against property balance transfer?
The following points highlight different advantages of a loan against property balance transfer:
- With this facility, borrowers can get low interest on their property loan which helps them save a substantial amount during the loan tenure.
- It allows individuals to top up their existing loan amount with Rs.1 crore or more depending on their eligibility.
- A borrower with a floating interest rate can choose a prepayment facility to clear off their debts at the earliest.
- Applicants can customise their loan terms with this balance transfer facility according to their financial objectives.
How can an individual apply for a loan against property balance transfer?
Borrowers can apply for a loan against property balance transfer by following the given steps:
Step 1: Visit the official website and fill in the LAP application form.
Step 2: Choose ‘Employment type’
Step 3: Under the ‘Loan type’ section, select ‘Loan Against Property Balance Transfer’
Step 4: Enter the required identity, lender, and property details.
Step 5: Finally submit income details.
Step 6: After reviewing the application form, select ‘Submit’.
What is the loan against property eligibility criteria?
To avail a loan against property, an individual must meet the following eligibility criteria:
- The individual has to be an Indian citizen or NRI.
- The individual must be a salaried or self-employed professional.
- An applicant must have an existing LAP from a financial institution.
- The borrower’s age to apply for property loan balance transfer ranges from 25 years to 70 years.
- A CIBIL score of 700 or higher is needed to get a LAP balance transfer.
Furthermore, the borrower must provide all the necessary documents like loan agreement, property papers, etc. to get loan against property balance transfer facility.
Do individuals get any property loan tax benefits?
There are different property loan tax benefits an individual gets by availing a property loan in India:
- Salaried individuals get tax benefits under Section 24(B) of the Income Tax Act. They are eligible for tax deductions of up to ₹2 lakhs under the scheme.
- Under Section 37(1) of the IT Act, individuals can apply for tax deductions if they opt for a property loan for commercial needs. Additionally, the associated processing fees are eligible for tax benefits.
Top-rated financial institutions provide pre-approved offers at attractive rates to their existing customers. Interested individuals can check their pre-approved offers by entering basic details on the official website of the lending institutions. These offers speed up the application process and are usually applicable on loans against property, home loans, etc. Therefore, a loan against property balance transfer provides a unique opportunity for individuals who want to reduce their interest burden and improve their financial condition. This transfer process can be executed in an easy and hassle-free manner.