A balance transfer is the transfer of (part of) the balance (either money or credit) to another account, often held in another institution. This is most often used when defining the balance transfer of the credit card.
Balance transfer allows customers to move their debts such as credit card balances, student loans, home loans, medical bills, car loans at zero or lower interest rate credit cards for a promotional or restricted period of time. The total sum and the types of balances that can be transferred depends on the credit card and the credit score. In addition, the balance transfer will be done according to the timeline assigned to the credit card service. Although many credit card issuers offer 0 per cent interest balance transfers, it is important to remember that some issuers do charge a transfer fee that may range from 0–5 per cent.
Balance Transfer of Home Loans:
Balance Transfer Home Loan allows the applicant to transfer home loans from Scheduled Commercial Banks (SCBs), Private and Foreign Banks, Housing Finance Companies (HFCs) registered with the National Housing Bank (NHB) and Borrower Employers whether they are Central / State Government or their undertakings or a public sector undertaking subject to the condition that the borrower meets the eligibility criteria. The borrower should have valid documentation showing the title of the house / flat.
Balance Transfer of Home Loans ROI:
The current interest rates on home loan ranges from 6.85% to 12.15% with a lowest EMI of Rs. 659 per lakh.
Karma Solutions have been in business for over a decade now. We completely understand the circumstances of every client before and after receiving loans. This refinancing approach offers better features when opted right. We therefore give the customer the option to transfer the outstanding balance under our guidance. Better terms and conditions, EMIs, and benefits that do not affect your investments will be offered to you. We will make provisions for all forms of loans, including personal and business loans.
Balance Transfer is indeed very beneficial when it comes to Augmented Loans. If you have used a loan that is not adequate to fulfill the criteria, you can apply for a top-up loan if selecting new lenders. The amount of the loan taken will usually be higher than the remaining balance. Based on the eligibility requirements, the volume of the loan can be increased.
The bank transfer eligibility is the same if you apply for a new loan. However, the compensation varies from lender to lender depending on whether you are a salaried or self-employed applicant.
Features of Bank Transfer
- Low Interest Rate
- No Hidden Cost
- No pre-payment charge
- Interest charges on Daily Reducing Balance
- Home Loan is used as an overdraft
- Concession of Interest for Female Borrowers