how to reduce home loan emi

Home Loan Balance Transfer

People prefer taking home loans that have lower interest rates and offer other benefits. For choosing the best home loan, you must always compare home loans offered by different banks before you finalize.

Reduce EMI through Home Loan Balance Transfer

Banks usually attract people by lowering the interest rates on their home loans. Usually new home loan borrowers grab this opportunity and the old home loan borrowers believe that they cannot benefit from the lower interest rates because of their lack of knowledge.

If you have already taken a home loan, but you find a better option, you can go for that by transferring the home loan to another bank offering better options for you. This is known as home loan balance transfer when you shift your home loan to one bank to another.

How to Reduce Home Loan EMI

Home loan balance transfer lets you enjoy the benefits of lower interest rates, better perks and great savings. Lower interest rates means that you will have to pay less amount which will reduce your regular EMIs. If you fear that transferring your home loan will be difficult and a complex process, do not worry because the process of transferring the loan is very simple and easy to understand.

Home loan balance transfer needs some planning though. There are chances that if you maintain good repayment record for at least twelve to eighteen months, your bank itself may reduce the interest rates. If your bank doesn’t allow this, you can go for home loan balance transfer. Before home loan balance transfer, you should calculate the amount that you will save by doing so, what services the new lender will provide you and for how long, whether the amount that you will save is worth going all the trouble or not.

The amount that you can save depends on the time when you transfer the loan and how much amount is remaining to be paid. Transferring the loan too late will not generate good savings, even though you may lesser EMIs for a short period. Also you should calculate the total amount that you will have to pay for transferring the loan such as prepayment charges, processing fee, documentation charges, stamp duty etc. It this amount exceeds your savings, there is no point of transferring the loan to another bank or plans.

Eligibility and Documentation required:

The eligibility criteria and the documents requirement may vary from one bank to another, but the most common eligibility criteria states that the individual applying for home loan balance transfer:


  • Should be at least 21 years old.
  • Should not be more than 60 years old if salaried person or 65 years old if self employed.
  • Must have a working experience of at least two years(one year in the current organization itself) if salaried.
  • Must have an experience of at least two years in the same field if self employed.
  • Must meet the criteria for minimum monthly income.


Documents that almost every bank asks for are:


  • Identity proof such as PAN card, Aadhaar card, Passport, etc.
  • Residence proof such as Aadhaar card, Driving License, Passport etc.
  • Application form completely filled.
  • Proof of age
  • If salaried – proof of income like bank statements of last six months, Form-16, salary slips etc.
  • If self employed – Income Tax Returns of last three years, bank account statements.
  • Property related documents


By being smart and choosing the best option for home loan balance transfer, you can save a lot and enjoy good services. This matters because bad service can nullify any good facility the new lender is providing you.



Transfer home loan to other bank


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