Balance Transfer Loan FAQ's

What do banks look in when they do a Balance Transfer?

There are 3 criteria's

• Re-payment track record of the existing loan
• Financial
• Property

 

Re-payment track record of the existing loan

• They repayment track record is expected to be clear with no late payment penalties, over dues & outstanding.
• There should be no EMI bounces at least for the last 6 months.

 

Financial Criteria for Salaried.

• Income - There is a minimum salary criterion & it differs from lender to lender, but the least is net of Rs. 15000/- pm.
• Credit Score
• Qualification
• Residence Locality
• Loan Repayment History

 

Financial Criteria for Business Person & Professionals.

• Type of Business / Profession
• Profit shown in the ITR
• Turnover
• Depreciation
• Business Vintage
• Company Profile
• Qualification
• Ownership of Residence / Place of Business
• Type of Accommodation
• Residence Locality
• Loan Repayment History

 

Property Criteria for Balance Transfer

• Most of the banks need the area of the property to be minimum 400 sft built-up.
• The property needs to be legal i.e.: the structure needs to be authorized it needs Municipal Approved Plan,      Commencement Certificate [CC] Occupation Certificate [OC]
• In case the property is resale where it is located in a society; we would need... Share Certificate, Society      Registration certificate. Municipal approve plan CC & OC is required; photocopies of these are available with the      society, It is the right of the seller / buyer to have a photocopy of these documents

 

The process for Home Loan or Mortgage Loan Balance Transfer is same as availing fresh loans.

 

How much tenor does a bank give for balance transfer?

The banks can renegotiate the current tenor or give a fresh tenor.

For Home Loan

• Salaried - Resident Indian 1year to 25years [different banks have different tenors, but 25 years is the max.]
• Business Person & Professionals - 1year to 20 years
• NRI Salaried - 1 year to 15 years.

 

For Mortgage Loan

• Salaried - Resident Indian 1year to 5years
• Business Person & Professionals - 1year to 15 years
• NRI Salaried - 1 year to 15 years.
  [ Different banks have different tenors, but 15 years is the max. Need to clarify the same with respective banks ]

 

For Personal Loan

• Salaried - Resident Indian 1year to 7years [different banks have different tenors, but 7 years is the max.]
• Business Person & Professionals - 1year to 3 years
• NRI Salaried - NA.

 

Age band for Balance Transfer Loan.

• Salaried - minimum entry age is 21 years and maximum exit age is 60 years or age of retirement.
• Self employed - minimum entry age is 25 years and maximum exit age is 65 years.

 

Geo Limits for Balance Transfer Loan.

Every bank's have demarcated their Geographical Limits where the property has to be located for lending and are comfortable lending in those areas only, this is mainly due to collection restrictions.