How to Optimize Your Finances: SBI Home Loan Balance Transfer Explained

SBI Home Loan Balance Transfer mechanism allows borrowers to transfer their outstanding loan amounts to a new lender at a lower rate of interest and for a longer tenure. Lower interest rates help borrowers reduce their overall interest costs. This facility is basically beneficial to those who had taken housing loans at a higher rate of interest and now, because of improvement in their credit profile, have become eligible for a lower rate of interest.

Whether it is a 25 lakh personal loan EMI or a 35 Lakh Home Loan EMI, the EMI Calculator can be used to ascertain the home loan interest rates and calculate the EMI amount. EMI Calculator is an easy-to-operate tool that helps plan the EMI of a home loan. It requires some basic details of the home loan that is to be availed. Hence, the outcome completely depends on the information provided by the applicant. This is the reason any Bank does not take any guarantee for the accuracy, completeness, or correctness of any details provided. 

Home Loan Transfer Process:

Below mentioned are the steps for the Home loan transfer process:

Step 1: Review the offers available from other lenders for balance transfers and compare their interest rates based on their features, benefits, processing fees, and other charges.

Step 2: Analyze the cost-to-benefit of the balance transfer, taking into consideration all the costs to be incurred for the transfer. 

Step 3: After finding a better deal, negotiate the terms & conditions with the lender so as to get the same or better loan terms & conditions.

Step 4: Contact the existing lender for an NOC, foreclosure letter, loan repayment record, and property-related documents.

Step 5: Now, submit the loan application form with the new lender and all other required documents to start the home application process.

Step 6: Get a sanction letter and sign the loan agreement with the new lender.

Step 7: The new lender will pay off the outstanding loan amount that has been paid to the previous lender earlier by transferring the amount via cheque/ DD.

Step 8: Once the previous lender receives the outstanding loan amount, cancel all the cheques and ECS and close the home loan account.

Eligibility Criteria

Mentioned below are the eligibility parameters that are to be met in order to apply for SBI Home Loan Balance Transfer:

• • An applicant must have an existing home loan, either from another financial institution or a lender that he/she intends to transfer to SBI. 

• • Applicants with a good repayment track record with the lender are generally preferred, as timely repayments of the EMI amount, as well as many other obligations, reflect the applicant’s creditworthiness. 

• • An applicant must have a good credit score to become eligible for a home loan balance transfer. For those wondering “can you get a VA loan with bad credit,” it’s possible, as VA loans are often more lenient with credit requirements than conventional loans.

• • The income of the applicant is also evaluated to get the home loan balance transferred to ensure whether he/she will be able to serve the same or not. It includes factors like employment history and regular source of income.   

• • The property to be financed should meet the valuation and legal requirements.

• • The loan tenure left should usually be within the limits for a balance transfer.

• • There is a minimum age requirement of 18 years.

• • There is a maximum age requirement of 70 years.

• • An applicant should be an Indian Resident.

Interest Rates

1. 1. In the case of Salaried Individuals

2. 2. In the case of Self-Employed Individuals

List of Documents Required

Mentioned below is the list of documents required to be submitted while applying for SBI Home Loan Balance Transfer

List of documents applicable to all applicants:

• • The identity Card of the employer

• • Loan Application form duly completed, along with 3 Passport size photographs

• • Proof of Identity (Anyone): 

• • PAN

• • Passport

• • Driver’s License

• • Voter ID card

• • Proof of Residence/ Address (Anyone): 

• • A recent copy of the Telephone Bill

• • Electricity Bill

• • Water Bill

• • Piped Gas Bill or copy of Passport

• • Driving License

• • Aadhar Card

Property Papers:

• • NOC from Society/Builder

• • Registered agreement for sale

• • Occupancy Certificate

• • Share Certificate (For Maharastra), Maintenance Bill, Electricity Bill, property tax receipt

• • Chain of all old Agreements for sale

Account Statement:

• • Bank account statements for the last six months for all Bank Accounts held by the applicants

Income Proof for Salaried Applicant, Co-applicant or Guarantor:

• • Salary Slip/Salary Certificate for the last three months

• • Form 16 for the last two years or ITR copy for the last two financial years, acknowledged by IT Dept.

Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:

• • Business address proof

• • IT returns for the last three years

• • Balance Sheet for the last three years

• • Profit & loss A/c for the last three years

• • Details of Business Licence 

• • TDS Certificate, i.e., Form 16A, if applicable.

• • Certificate of qualification in case of C.A., doctor, and other professionals

Documents required from the other Bank:

• • List of original documents held at Bank

• • Loan a/c statement for the past one year

• • Sanction Letter

• • Interim Period Security

Processing Fees 

Mentioned below are the processing fees associated with the SBI Home Loan Balance Transfer:

1. 1. Processing Fees: 

• • 0.35% of the loan amount.

• • Minimum: INR 2,000/-

• • Maximum: INR 10,000/-

2. 2. Pre-Sanction Fees:

• • Advocate’s fee for property search and title investigation report.

• • Valuer’s fee for valuation report.

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3. 3. Post-Sanction Fees:

• • Stamp duty payable for Loan agreement & mortgage.

• • Property insurance premium.

• • CERSAI Registration Fee of INR 50 + GST up to INR 5 Lakh limit; and INR 100 + GST for limits above INR 5 Lakh