Home Loan Balance Transfer: Home loan balance transfer means that you transfer your ongoing home loan from one bank or financial institution to another bank or financial institution that is offering you better terms. If your existing home loan is at 9% interest and another bank is offering 8.5% interest, then you can save on interest by transferring the loan through HLBT.
Add informalnewz.com as a Preferred Source
Home Loan Balance Transfer: The Reserve Bank of India (RBI) has recently reduced the repo rate twice in 2025. First it was reduced to 6.25 percent in the month of February and then further reduced to 6 percent in April. This has become a good opportunity for home loan borrowers to explore options to transfer their loan at a cheaper interest rate.
One way to do this is Home Loan Balance Transfer (HLBT). In this, you can transfer your home loan from one bank to another bank, which gives you loan on better and cheaper terms. Let us now know what can be 3 smart reasons for transferring home loan balance.
Low interest rate and savings in EMI
Home loan balance transfer helps in saving EMI, because usually when you transfer your loan from one bank to another, the interest rate is reduced. When you move from a loan with a higher interest rate to a loan with a lower interest rate, your savings increase. For example, if you transfer a loan of Rs 45 lakh from 9.5 per cent to 8.5 per cent interest rate, you can save around Rs 4.6 lakh in interest.
Better loan term and flexibility
Home loan balance transfer is not just a way to get a lower interest rate. Some banks offer the option of extending the loan repayment period up to 30 years and also provide the facility to change or increase or decrease the EMI according to your convenience. Apart from this, many banks also offer top-up loans along with balance transfer, which you can use for expenses like home repairs, treatment or education.
Increasing customer satisfaction
Many times people transfer their loan because they have to face hidden charges, high processing fees or poor service in the old bank. New banks or lenders often offer clean fees, better support and good digital facilities. Therefore, the decision to transfer loan is not only made for saving money, but also to get a better experience.
