How To Transfer My Home Loan? (Switch banks)

Updated on December 18, 20184 mins read
transfer your home loan

Due to a high disparity between interest rates for existing and new customers, several home loan customers are unhappy with the high rates they are being forced to pay. But when banks start discriminating between you and its new customers, it’s time for you to transfer your home loan to a lower interest rate and save money!

So here is a 5 step guide to transfer your home loan to lower interest rate: 

How To Transfer My Home Loan

Step 1: Cost Benefit Analysis

Cost benefits analysisAnalyze your situation, after which you will be able to decide the viability of transferring your home loan. Here are a few broad guidelines that will help you:

  1.  If your home loan is on a fixed interest rate, then you will have to pay a pre-payment penalty to transfer your loan. In this situation it is not advisable to transfer your home loan.
  2. But if you have a high floating interest rate, then transferring your loan to a lower interest rate will be beneficial. Most leading banks are now offering interest as low as 8.3% per year.
  3. If you have a home loan with long repayment tenure, then transferring will benefit you, as a longer time-period implies higher benefit.
  4.  You must take keep an eye out for hidden costs in the process. For example, some banks do not include documentation charges in the processing fee. Also, when a new mortgage deal is prepared, a Stamp Duty has to be paid on that (which is not included in the processing fee).

For a detailed and personalized analysis of your home loan, use our balance transfer calculator.

Step 2: Get NOC From Bank


Next step is to get an NOC (no objection certificate) from your bank along with:

  • foreclosure letter
  • your payment history and
  • list of your documents that the bank has

This process may take 1 – 3 weeks, varying from bank to bank. At this stage, your current Bank will try to retain you by offering to slash the interest rate. It is best to take this offer and get a counter offer from another bank, with a little more effort.

Step 3: Apply To New Bank

applying to the new bank

Now that you have all the required documents ready, it’s time to apply to a bank of your choice.

For this you will have to get an NOC from your housing society/builder and submit proof of ownership, proof of income etc. to the bank. The bank will then check your ability to pay the EMI.

Since the process differs from bank to bank, it is not possible to list a standard procedure here. While applying, you can decide to top up the balance on your home loan, reduce EMI or reduce tenure.

Step 4: Credit Approval

Loan approval The bank will now evaluate your application and decide your eligibility. There is a chance the bank may want further details in this process. This is a time consuming process, as different banks have set different procedures. This process may take 3-4 weeks, varying from case to case. The bank will carry out extensive background checks on you before they give you a credit approval. It will:

  1. Re-evaluate your home loan
  2. Check your credit history
  3. Check the authenticity of ownership
  4. May also require extra documents from you

After the Credit Approval process is complete, the bank will give you a letter stating the interest rate at which the loan will be sanctioned along with terms and conditions. Once you get a credit approval from the new bank, it’s time to make the final decision to switch.

Choose between old and new bankYou have two options:

  1. Switching your home loan from your existing bank to the new bank
  2. Switching your home loan within the same bank to a lower interest rate

 Step 5: Documentation With Chosen Bank

Document verificationIn the final stage, you will need to complete the documentation process with the chosen bank. Both, your old and new bank will have a specific requirement of set of documents to complete the switching process.

A catch 22 situation arises in case of transfer to the new bank as the old bank will release your documents only if they get the cheque for the balance principal amount and the new bank will release the cheque only after all the documents are submitted to them.

To solve this, a meeting is held between representatives of the two banks. A cheque of the balance principal amount is handed over to the old bank, following the hand-over of your loan papers to the new bank. This ends the transfer process of your home loan.

You can save up to 30% of outstanding principal, calculate your savings here. It is quick and easy to use. You can also Signup with us to avail a free evaluation of your home loan by our experts today!

Our customer, Mrs. Smruti Prem saved Rs. 10,41,905 by switching home loan from DHFL to SBI. This is what she has to say“I just gave them the documents SwitchMe asked for, signed the forms, and visited bank for signing the agreement with SBI after loan sanction. Thanks for the smooth service.” 

Checkout her switching process here:



Tarini comes with a degree in Mass Communication and Media studies. She joined SwitchME as a content writer and moved on to being an assistant product manager. Tarini is an experienced Content Strategist with a background in Product development and management. She is skilled in SEO, social media strategy and online content marketing and likes to travel when possible

Have a question? Post it here and we will get back to you within 1 working day.

  1. Adi
    May 24 2020 at 10:35 pm

    I have a loan account with one of NBFC which is charging huge interest. Want to switch to suitable bank. I got the CLSS subsidy in current bank. While transferring the current loan, they advised the CLSS subsidy will be reversed back as it is a under construction project. But I have the project completion certificate from existing builder. Keep advice, really it will be reversed back. If yes can I apply in the new bank where I want to transfer.

    • Aditya Mishra
      Aditya Mishra
      Jun 11 2020 at 10:18 pm

      Yes it will reversed. Unlikely that the new lender will give it to you but its best to check with the target bank

    Jan 08 2018 at 3:03 pm

    hi my Current loan with aspire Home Finace at puneaat the ROI is 13.50% and i just got the PMAY scheam and my O/S is Reduced to about 7.04 lac out of 9.46 lac but now i want to change this bank deuto ROI and other regins can its possible to me as i am to much Confused as per Guidelines given by PMAY that— In case a borrower who has taken a housing loan and availed of interest subvention under the scheme but later on switches to another PLI for balance transfer, such beneficiary will not be eligible or claim the benefit of interest subvention again.

    but the Existing bank asking me to Refund the Subsidy amount to Bank and then apply For the BT please guide me for the same

    • Suma Ganesh
      Suma Ganesh
      Jan 22 2018 at 11:21 am

      Hi Ganesh,

      That is correct..
      After taking PMAY benefit you can only switch if you repay the subsidy received.
      You will also not be able to apply again for subsidy with the next bank.
      I would suggest you do a thorough analysis of cost and benefit under different options

  3. Anant Gadkari
    Oct 03 2017 at 4:52 pm

    I have home loan for Rs.2000000. I have paid total 4 emi till today. As now I am on fixed rate of interest @8.50 After 1 year it will be floating rate. It is advisable for me to switch over to SBI ?

    • Suma Ganesh
      Suma Ganesh
      Oct 25 2017 at 12:20 pm

      Hi Anant,
      Thank you for writing in to us.
      Generally the cost of switching from fixed rate to floating rate is 2% of outstanding loan.
      However, one of our expert advisors may be able to guide you with more information. We would request you to register on our website for this.

  4. sujitbhujbals
    Sep 18 2017 at 12:58 pm

    Currently sbi is waiving processing fee. So what are other fees required for home loan transfer My home loan amount is 2500000

    • Suma Ganesh
      Suma Ganesh
      Oct 30 2017 at 10:25 am

      Hi Sujit,
      You are right about the processing charges.
      Other charges include legal and valuation cost, stamp duty, foreclosure charges (current bank), other documentation charges etc.

  5. Subhendu Dan
    Sep 11 2017 at 2:01 pm

    Greetings.. My current home loan is with United Bank Of India where my O/S is 1600000 and ROI is 10.25% floating. I started paying EMI 17500/- since September’ 2014.
    Due to personal circumstance, I need to reduce my EMI, hence I need to switch and my preferred bank is SBI. I am visiting UBI bank frequently to get the the policy/ information somehow they are not co-operating with me.
    Initially they told me that I have to pay prepayment charges though it’s not mentioned in my sanction letter but later they told me that you do bot need to pay prepayment charges.
    Today I was visiting to UBI bank and they told me that you have to pay take over charges (As per them it’s a RBI policy) as my loan will be take over by SBI however this is not mentioned in my sanction letter.
    So, please help me how to handle this kind of situations.

    • Suma Ganesh
      Suma Ganesh
      Nov 02 2017 at 10:03 am

      Hi Subhendu,
      Thank you for writing in to us.
      A small foreclosure fees will be applicable at UBI.
      You may get clarity if you meet a senior manager at the bank.
      Please see the procedure to Switch in our post above.
      If you would like our help in switching your loan, please register on our website.
      One of our expert advisors will get in touch with you. We will take care of the entire procedure for you.

  6. Dhaval
    Sep 27 2016 at 4:24 pm


    I have applied for a balance transfer on my property from Bank of Maharashtra (BOM) to Standard Chartered bank (SCB). SCB has sanctioned my loan and is in final stage of disbursal. SCB sanction letter mentions that I need to submit builder NOC (since society is not formed) post disbursal within 30 days.

    However, when I spoke to the builder regarding this, he is demanding Rs 15000 for NOC letter. I am not willing to pay a single penny to builder for this illegal charges.

    Since this is post disbursal document needed by bank, my loan can still get disbursed.

    However I have 2 questions –

    1) Assuming if I go ahead with disbursal and if I am not able to provide NOC to the bank what action can they take on me?
    2) I am negotiating with bank to get waiver for this document. So incase if they agree, and I do not inform builder about this loan transfer does it any way impact me during society formation, resale or any point in future?

    Looking forward to your response.

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 11:35 am

      Hi Dhaval,

      Have answered your queries below:
      1. It would be mandatory to provide the NOC to the bank after disbursal and we are not aware what action might be taken.
      2. If do not inform builder about this loan transfer, in the future it might land you in problem during resale.

  7. Ravindra
    Sep 02 2016 at 2:47 pm

    Hi Tarini,
    Hope you are doing well.
    I am having my home loan with HDFC bank and I want to transfer it to SBI. Currently SBI is having scheme that they are not taking processing fee for loan transfers, means processing fee will be NIL. I just want to confirm, will there be any other charges, any government charges or stamp duty charges, etc. Please let me know.

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 12:36 pm

      Hi Ravindra,

      There would be other charges including valuation fees, legal fees, stamp duty and cersai charges.

  8. Bismillah Khan
    Aug 11 2016 at 1:46 am

    I have availed a loan of 20 Lakhs from DHFL in the year 2011 for aperiod of 20 yrs. Their ROI has been very high all along . It is currently 11.75% . I have never defaulted on my EMIs . I now wish to transfer my loan to a Bank. Kindly advise as to which bank should I opt for amongst SBI, ICICI or Axis Bank for the transfer.

    Bismillah Khan

    • Sumita Nath
      Sumita Nath
      Sep 30 2016 at 4:31 pm

      Hi Bismillah,

      You can opt for any of the banks mentioned, but SBI and ICICI have better rate of interest. You need to fulfill the eligibility criteria set by the banks for the transfer. Here’s a broad outline of the documents you will need to attach along with the home loan application in your target bank:
      – ID proof
      – address proof
      – property documents
      – ownership proof
      – salary proof

  9. Learner
    Jul 11 2016 at 9:41 am

    Do I have to pay Intimation and stamp duty charges in case of a top up loan in Mumbai?

    • Sumita Nath
      Sumita Nath
      Oct 05 2016 at 3:18 pm

      Hi Nainesh,

      Sorry for the delayed response. You just need to pay intimation charges in case of a top up loan.

  10. Moorthy
    Jun 23 2016 at 1:11 pm

    Hello Tarini,

    1) I have taken a Home loan from Sundaram PNB. Total Home Loan amount is 23 Lacs. with 20940 Rs, EMI. Now outstanding is 22.14 Lacs. I have paid 14 EMIs.

    2) I have taken a personal loan from HDFC for 7.5 Lacs. Now outstanding is 6.5 Lacs. Also i have a requirement of 3 Lacs.

    3) I am in touch with HDFC Bank people for Home loan transfer. They told me that i can get top up for the personal loan & required amount based on the current value of the property.

    4) I used the calculator from your website, it shows 2 yrs EMI saving by transferring to HDFC Bank.

    My doubts are

    1) What is Home loan Top up?

    2) Whether i can get top up amount as CASH?

    3) I general by transferring to HDFC , how much money i have to spend like processing fee, registration fees & other fees.


    • Tarini
      Jun 24 2016 at 1:56 pm

      Hi Mr. Moorthy

      Thank you for writing in, here’s a response to all your queries;
      1. A home loan top up is an additional loan which can be availed on the mortgaged property. It will not be clubbed with your existing home loan. Its treated as a separate loan and the interest rate is higher than a home loan, but generally lower than a personal loan.
      How is it different from a personal loan? : The only difference is that the top up loan is given against the existing security that has been mortgaged with the bank – your house.

      2. Can you get top up loan in cash? – Unfortunately that is not possible. Like all other loans, this loan will be disbursed through a loan account. further, most banks give top -up loans only for specific reasons related to; home improvement, home additions (permanent structural renovations).

      3. You will be able to see a break up of the total costs involved on the calculator comparison page. Just open up the details, you can save that link for any further reference if you like. Its a unique link generated just for you 🙂
      Do let me know if I can help with anything else.

  11. Biju
    Jun 20 2016 at 3:32 pm

    Is there any minimum time frame before we can shift a housing loan ? I took a topup loan from LICHFL on april and how soon can I transfer the loan ?

    • Tarini
      Jun 21 2016 at 1:36 pm

      Hey Biju

      No, there is no time frame or ‘lock-in’ period as such. You can switch your home loan anytime you like. Our Home Loan Adviser will get in touch with you shortly to run you through the entire process 🙂

  12. Mandar Bagade
    Jun 17 2016 at 10:45 pm

    Hi! I have taken home loan of Rs. 40 lakhs from ICICI bank a year ago. I have paid all 12 EMI’s regularly. I want to transfer the loan to SBI. I want to know what all documents required & the total cost required.

    • Tarini
      Jun 21 2016 at 2:21 pm

      Hey Mandar
      Please use our Home Loan Transfer Calculator to get a complete list of the savings and costs involved. along with a detailed breakup of the costs incurred by you, you will also be able to compare the costs and benefits of switching within ICICI as well.
      2. Further, here’s a broad outline of the documents needed:
      – PAN Card (compulsory) – can also serve as an ID proof
      – Current Address Proof
      – Property documents
      – Income related documents : salary slip, bank a/c details, ITR receipts, proof of employment
      Our Home Loan Adviser will get in touch with your shortly to run you through the entire process of switching and suggest any further documents needed, based on your case 🙂

  13. Mohit Anand
    Jun 14 2016 at 4:42 pm


    I had taken a loan of INR 36 lacs from LICHFL at fixed rate of interest of 10% for 2 years, now after completion of 2 years the rate of interest is 11.70% and LICHFL is offering me a rate of Ineterest @ 9.95% at a fee of INR 1150.
    The rate of interest being offered by HDFC bank is 9.40% thus i am plaaning to switch the bank to HDFC but according to LICHFL area manager the rate of interest offered by HDFC is just an offer rate and HDFC will increase it anytime and may bring it upto 10%.Is if true or they are just lying to retain my account.

    I need your kind advise as to should i transfer the loan accout.


    • Tarini
      Jun 16 2016 at 4:11 pm

      Hey Mohit

      Here’s the truth about how the bank’s function – profit making is top priority, customer’s come next. So yes, what your bank manager is true of all banks and lending institutions that lend on floating rates. They offer reduced rates to lure customers and then gradually hike it after a few months, that’s how private lenders work (unless you are looking to switch to a nationalized bank).
      So whether you stay with LICHFL, or move to HDFC, they are both likely to hike the interest rates after you switch to the lower rate. Hence I suggest that you move to a nationalized bank like PNB or SBI if you can, or take the reduced interest rate with maximum benefits at present (considering the costs involved in switching).

  14. Raghav
    Jun 08 2016 at 2:34 pm

    Hii Tarini,

    Hope you are doing good.

    My homeloan is with LICHFL. Last month onwards the rate of interest has changed to 9.95% fixed.

    Can you please suggest me whether should I stay with LICHFL or have to look for other options like balance transfer to SBI/Axis,etc..

    Is that the only criteria to see only the rate of interest? What are the things we have to take into consideration for the balance transfer.
    I got the info like: to switch to SBI, i may have to pay Rs. 32,000/- towards processing fee/mortgage charges/legal charges,etc..

    I am sorry I have many more questions 🙂

    Please suggest me is it a good deal or not. How much I can save?


    • Tarini
      Jun 08 2016 at 2:51 pm

      Hey Raghav

      Here are a few things you need to consider before you opt for balance transfer:
      1. Compare all parameters such as interest rate, processing fees and other bank charges involved : you can use our balance transfer calculator for free
      2. Get a sense of how good the customer service of the bank is

      I suggest that you calculate your total savings and total costs involved to take the decision 🙂

  15. swapnil
    Jun 07 2016 at 10:49 am

    HI Tarini, Hope you are doing well. I have home loan in IDBI bank on floating basis and want to transfer it to SBI. Kindly suggest me the documents required and the procedure (Including fees) for the same.

    • Tarini
      Jun 07 2016 at 5:22 pm

      Hey Swapnil

      Thank you for contacting us. Here’s a broad outline of the documents you will need to switch to SBI:
      1. ID proof
      2. Address proof
      3. Proof of employment
      4. Proof of income
      5. Application letter for home loan balance transfer
      6. Property papers
      7. all these documents will be needed off your co -borrower too (if any)

      Our Home Loan Advisor will get in touch with you shortly to guide you and assist you with all the nitty grittys of the process 🙂

  16. Bharat Bhanvase
    Jun 01 2016 at 1:48 pm

    I have taken topup housing loan from LIC HSG FINANCE LTD. Now i want to transfer it SBI. Is it possible to transfer this loan to SBI and how SBI will treat this loan i.e. housing or any other. What will be interest rate for the same.
    Bharat Bhanvase

    • Tarini
      Jun 02 2016 at 6:39 pm

      Hey Bharat

      Thank you for contacting us. Regarding your queries;
      1. Yes, it is possible to switch your home loan to SBI.
      2. On switching your loan, it will be treated just like any other home loan in SBI, no discrimination will be done on any grounds. You will be offered the prevailing lending rate of SBI, which is at 9.40% currently.

      Our Home Loan Advisor will get in touch with you shortly to guide you further about the process 🙂

  17. Satyam
    May 27 2016 at 12:21 pm

    Am satyam from Hyderabad….i have taken a personal loan of Rs. 4 Lacs from Telangana Grameena Bank in last december. Now, i want this loan to be transferred to another bank. please suggest if it is possible, and if so, please suggest the banks.


    • Tarini
      Jun 16 2016 at 5:27 pm

      Hey Satyam

      Yes! You can definitely transfer your personal loan to another bank or lending institution of your choice. You can look at borrowing from HDFC, SBI, PNB – these are a few lenders that offer competitive and low interest rates on personal loans. However, before your switch, please do a cost – benefit comparison on interest rate being offered and cost of switching (processing fees, registration etc), that will have to be borne by you.

  18. Hitanshu Tripathi
    May 26 2016 at 12:39 am

    Hello mam,
    I have taken home loan from Reliance (25 lacs) in May 2014, have paid all its EMI without fail till date (28024 per month) Can I switch over it with another bank for interest saving? whats the procedure to do so? and another question Can I change/transfer my loan to some other person ? and am I eligible for another home loan?

    • Tarini
      Jun 16 2016 at 6:00 pm

      Hey Hitanshu

      Here’s a clarification to all your queries;
      1. Yes! You can most definitely switch to another bank offering a lower interest rate. Here’s a tool you can use to find the cheapest bank for you to switch to, just enter simple details to get instant results.

      2. Switching one’s home loan is a fairly long process. It takes around 1 – 2 months and will require you to visit your current bank and target bank multiple times, for various documents and formalities. Here’s a broad outline of the documents you will need to attach along with the home loan application in your target bank:
      – ID proof
      – address proof
      – property documents
      – ownership proof
      – salary proof
      – All these documents are applicable to your co -borrower as well

      3. No, the home loan cannot be transferred to another person, this is not permitted.

      4. Eligibility for another loan : This depends on several factors, like your repayment capability, your CIBIL score, existing debts (loans, credit card payments), details and type of property you are investing in etc. Your eligibility is best determined by the bank you are applying to for a home loan.

      I hope this is helpful 🙂

  19. ashoo sharma
    May 07 2016 at 9:28 am


    • Soni Singh
      Soni Singh
      May 16 2016 at 4:04 pm

      Hey Ashoo

      You can transfer you home loan if you have paid at least 3 EMI’s and you can definitely switch to SBI if you satisfy their eligibility criteria. Charges and process of loan transfer depends in which city your property is located.

      Hope this information helps. If you need any further assistance, you can call on +918108899980.

    Apr 28 2016 at 2:06 pm

    Hi Tarini,

    I have taken home loan from HDFC – for 23 Lacs plus the HDFC Ergo Prop Insurance amnt 30k
    Total = 23.30 Lacs

    HDFC provided me two insurances that time, 1st was HDFC Ergo for 30k and second was HDFC life flexi Growth.

    Now, I wish to transfer my loan from HDFC to SBI. Please guide me related to insurance transfer. Do i need to transfer HDFC Ergo and Life insurance to SBI? or do i need to cancel these insurances and get new from SBI?

    • Soni Singh
      Soni Singh
      Apr 28 2016 at 5:53 pm

      Hi Ganesh,

      For Life Insurance, you will be charged only for the period you have used this policy and if you cancel the same, you are eligible to get the refund of balanced premium paid.

      For Property Insurance, you can transfer it to SBI.

      Hope the information helps.

  21. Komal Mahajan
    Apr 27 2016 at 12:56 pm

    Hi Tarini,

    I am taking a Plot+Construction loan from a India Shelter Finance, Its ROI is 12.75%. Have you heard of this ‘India Shelter finance’ name? Is it Ok to take Loan from this Finance company(As i could not found and reviews for this Finance company? Also, If i want to transfer my loan to some other bank from India Shelter.. Is it Possible? Please advice ASAP.


    • Tarini
      Jun 28 2016 at 5:35 pm

      Hey Komal

      A) First, I suggest that you borrow from a well known lender as it has several benefits for the borrower;
      1. financial stability – well known lenders are usually more stable than small time lenders and offer better financial stability, safeguarding the interests of their customers
      2. competitive interest rates – 12.75% for a home loan is exorbitant at a time when the lowest market rate is 9.55% (offered by SBI)! Well established lenders offer lower interest rates as they are more stable and can afford to take care of their borrower’s interest, along with competing with the best in the industry.
      Hence, if you haven’t taken the home loan already, I suggest you approach well established banks like SBI, PNB, or financial institutions like HDFC, DHFL.

      B) If you have already taken the home loan, then please switch to a lender that provides a lower interest rate. You can switch your home loan anytime you like (without paying any penalty) as long as you are a floating interest rate. If your home loan is on a fixed interest rate/ hybrid interest rate, you will be liable to pay a 2% penalty (of outstanding loan amount), to switch your home loan. Please make use of this home loan transfer calculator to find the best lender for you 🙂

  22. Elisham
    Apr 21 2016 at 6:52 pm

    Hi Tarini,

    Can you please give me a suggestion, I was taken home loan from LIC HFL, Hyderabad. Now currently outstanding amount is 5 lacks. Until April’16 it is on the fixed rate of 9.75, now it came under floating with 11.7% ROI. Can you suggest me, is it advisable me to transfer from LIC to HDFC or SBI banks?.


    • Soni Singh
      Soni Singh
      Apr 25 2016 at 11:49 am

      Hey Elisham

      You are paying quite high rate of interest. It is advisable to transfer your home loan to some other lenders which are offering a much lower rate of interest.
      To guide you further, kindly share your contact number and our home loan advisor will be in touch shortly or else you can call on +918108899980

  23. anshul
    Apr 21 2016 at 3:33 pm

    I need to transferred my loan from Indian Bulls to Sbi.What is the the process and please help me on this.

    • Soni Singh
      Soni Singh
      Apr 25 2016 at 11:59 am

      Hey Anshul,

      To guide you with home loan transfer process,kindly share your contact number and our home loan advisor will be in touch shortly or else you can call on 8108899980

  24. shalaka
    Apr 11 2016 at 9:05 pm

    This is shalaka i have taken home loan from aspire home finance of 1941947 i have paid one instalment of 23447,that is 13.50%rate of intrest now i want to switch it to sbi bank is it possible or should i wait for some more time

    • Soni Singh
      Soni Singh
      Apr 25 2016 at 5:33 pm

      Hi Shalaka

      You can definitely switch if you satisfy the eligibility criteria of SBI.

      Currently, you are paying quite high rate of interest and if you are planning to switch your loan, kindly share your contact number to help you with best possible options or else you can call on +918108899980.

  25. Raja
    Apr 11 2016 at 2:45 pm

    I have taken a Home Loan with LICHFL on 2010 Nov and the amount was 20 LK. The scheme was 9.25 fixed for 5 years and then floating . I checked my current interest rate which is now 11.45. I spoke to LICHFL and they suggested to re-write the interest rate to 10.2 by paying RS-1145 /- . Mean while I have contacted HDFC to do the loan transfer and they are offering 9.55 . I have remaining 17 lk to re-pay and I have plans to do it in next 10 yrs.

    Could you suggest if it wise to do the loan transfer to HDFC or I should continue with by doing the re-write?

    • Tarini
      Jun 16 2016 at 5:19 pm

      Hey Raja

      Since you have a long way to go before you close the home loan, i suggest that you switch your home loan to HDFC and avail the lowest interest rate possible. However, before doing so, do analyze the the costs and benefits involved in the switch. If the numbers are in favor of switching ie. the savings supersede the costs involved then please do go ahead. Here’s a tool that will help you make a comparison across several other banks 🙂

  26. Mihir
    Apr 09 2016 at 9:46 pm

    I have taken a loan from PNB Housing when I was outside India, I have just paid two EMIs. Now I back to India and the flat I found not accurate as per the design. hence I discussed with builder and now builder is ready to give me other flat in the same tower only floor and flat now changed….Builder told me to check with PNB and let them know what documents bank may need for update in bank record.

    Please advise the possibility and the necessary steps I need to take now..
    Thanks in advance.

    • Tarini
      Jun 16 2016 at 5:11 pm

      Hey Mihir

      I suggest that you pan out the details of the change in property with your bank. they will be able to guide you best about any additional documentation or other formalities that may be needed.

  27. viren
    Feb 23 2016 at 2:45 pm

    Im doing a balance transfer of my home loan & have got the approval from the new bank.
    But,the old bank is asking for 2% penalty if I donot pay from my own sources.
    The new bank obviously will pay in favour of old bank,not in my name.
    Please advise.

    • Tarini
      Feb 25 2016 at 2:09 pm

      Hey Viren

      Is your home loan currently on a floating rate? If yes, then the demand made by your current bank is completely invalid, RBI rules and regulations have strictly banned an prepayment penalties on home loan transfers if the borrower is on a floating rate of interest.
      Its a standard practice across all banks to take over a home loan by paying off the current lender of their customer. Their demands are baseless, as there are no such rules and regulations. I hope this is helpful.

  28. Nirmla
    Feb 23 2016 at 10:33 am

    Hi Tarini

    I have a home loan is with Muthoot Housing Finance Ltd. amounting to 4,80000 with high interest rate for 15 years. One year already elapsed. My current EMI is 6340. Now I wanted to transfer my home loan from Muthoot Housing Finance Ltd. to SBI (Her Ghar scheme). Kindly suggest what should I do? I have no knowledge abouth this. Please advise.

    • Tarini
      Feb 25 2016 at 2:29 pm

      Hey Nirmala

      Thank you for contacting us, our Home Loan Advisor will get in touch with you shortly to guide you through the entire process. Meanwhile I will run you through the process in brief:
      1. You will have to go down to SBI with your case details, documents etc. and check with them if they are willing to take over your case.
      2. If you get a positive response, you will need to fill out an application form and get a few documents from your current bank.
      3. Once you get all the documents from your current bank, the verification process in SBI will start.
      4. The home loan will be sanctioned only once verification is complete.
      The whole process can take anytime between 2 – 3 months, if done independently. However, we could help you out with the paper work formalities and bank visitations, completing the process for you within a month.
      I hope this helps 🙂

    • Nirmla
      Feb 25 2016 at 3:25 pm

      Thanks Tarini for your advice. Sorry to bother you again just wanted to confirm when I transfer my home loan to another bank then new bank will also charge processing fee and other charges. Is there a provision of penalty if I pay loan before time.

    • Tarini
      Feb 25 2016 at 4:58 pm

      Hey Nirmla

      It’s not a bother at all, when you switch your home loan to another bank, you will have to pay a processing fees (just like you did when you took the home loan). If your home loan is on a floating rate of interest then no prepayment penalty will apply (as per RBI and NHB rules and regulations). Do let me know if I can help you out with anything else 🙂

  29. vijay
    Feb 16 2016 at 12:30 pm

    Hi Tarini,

    I took 24 lakhs home loan from DHFL for individual house and they are charging high interest rates 12.5%. I am located in Bangalore and the site is B katha. Can I transfer my home loan to SBI bank ? what is the procedure to follow. loan is for 20 years and completed 5 years.

    • Tarini
      Feb 16 2016 at 2:34 pm

      Hey Vijay

      Thank you for getting in touch with us. Unfortunately, you will not be able to switch your home loan to SBI as you don’t have an A khata Certificate. Our Home Loan Advisor will get in touch with you shortly, to guide you further 🙂

    • vasan
      Feb 23 2016 at 3:22 pm

      Hi Tarini,

      I am owning the property in Chennai. I have taken home loan in Axis bank. Now due to relocation i am planning to sell the house.
      Is it possible to transfer my home loan to the buyer’s name. As the buyer is also going for loan.

      Please tell us your experience and how to proceed.

    • Tarini
      Feb 25 2016 at 2:18 pm

      Hey Vasan

      Yes, you can go ahead and transfer the loan to your borrower, provided the borrower is willing to take the loan from the same bank as your’s. If not, then once your borrower has paid you for the property (either through his bank or personal funds), you can use that amount to close your existing home loan. I hope this helps.

  30. Ankur Mishra
    Feb 14 2016 at 9:52 pm

    I have taken a home loan from Religare housing at june 2015.
    The ROI is 17%
    Now i want to switch my loan.
    My property is not approved
    And i m self employed person

    Plz me suggestion.
    How is it possible

    Ankur Mishra

    • Tarini
      Feb 17 2016 at 3:19 pm

      Hey Ankur

      Thank you for contacting us. Our Home Loan Advisor will get in touch with you shortly to guide you through the process. Do note that since you are self employed and your property is not approved, there may not be many bank options available to you. The best options could be DHFL and LIC HFL. These lenders have a lenient documentation requirement and offer competent interest rates.

  31. Rajesh
    Jan 22 2016 at 4:43 pm


    I have to switch LIC home loan to SBI home loan but facing issue of NOC. Builder is not giving NOC free of charge. He is asking Rs. 50000/- for NOC. Please suggest all possible ways which will help me in this case.

    • Tarini
      Feb 09 2016 at 2:57 pm

      Hey Rajesh

      This is insane!! All builders are supposed to provide the NOC free of charge. While some builders may charge a maximum of 5,000, this amount is simply too high and not acceptable. Please negotiate hard with the builder, you should be able to bring this down substantially. Do let us know how it goes.

    • Navi
      Feb 15 2016 at 1:42 pm

      Hi ,
      I took home loan in SBH. I asked to keep 15 years as my loan term but they kept 20 years and they said it won’t charge extra interest and it will be helpful if can’t pay in 15 years.

      They suggested me to pay equal amount of EMI for 15 years so it won’t chare more interest. is it true?

      Please advice..


    • Tarini
      Feb 17 2016 at 3:02 pm

      Hey Navi

      I don’t quite understand. How can the bank not charge you interest for 5 years?! I believe you are being misled by the bank official so that they can get you to pay up more interest on the entire home loan. Please tell the bank to reduce the home loan to 15 years. Even if you are paying an equal EMI as that of a 15 years loan for 20 years, you will still be paying that EMI for 5 additional years. I hope this is helpful.

  32. Niket
    Jan 22 2016 at 12:47 am

    Hello. I am about to buy a property but unable to decide the Bank for the Home Loan. My Builder is pushing me to go for ICICI but I see there are some benefits in SBI Max Gain Loan. Can you please help me get a better understanding of the Loan Process. Shall I go for ICICI as of now and then later switch to SBI ? Will ICICI charge me any amount as penalty to do this Loan Transfer later?
    I would need your services further. NIK

    • Tarini
      Jan 25 2016 at 3:09 pm

      Hey Niket

      Before you make a decision, please consider the following aspects:
      1. The speed of processing:
      while SBI will take approx. 3- 4 weeks to give you a saction letter (depending on your documentation, the builder etc.), ICICI will be able to offer a faster processing and should give you a sanction letter within 2 weeks max.
      2. Has the project been preapporved by SBI?
      Since the builder is pushing you take a home loan from ICICI, its highly likely that the project has been prepapporved by them. However, if the project has been pre approved by SBI too, then you may be able to get a faster sanction.
      3. How much loan are you getting?
      While SBI will offer you a max loan amount of 80% of the property value, ICICI may offer a higher value based on your eligibility and repayment capabilities.
      4. Interest rate being offered:
      While ICICI will offer you an interest rate of 9.65%, SBI offers an interest rate of 9.55%. If you take on a woman as a primary owner and co borrower of home loan, the you will be able to get a discounted rate of 9.6% on ICICI and 9.5% in SBI.
      I would suggest that you weigh the pros and cons of each and go with the bank that satisfies your requirements best.

      Moving on to SBI Maxgain as a product:
      Its different and better than taking a regular home loan as it offers an Over Draft (OD) Facility, which allows you to park all your surplus liquidity and savings in this account. by doing so, you will be able to reduce the total interest payable substantially. In a typical SBI Maxgain account statement, you will be see the following accounts:

      1. Drawing power: This reflects the home loan amount that has been disbursed. It will reduce with every EMI payment you make. It should reduce in the same proportion as the principal component of your EMI. This can be verified against the amortization schedule provided by the bank (it shows a break up of each EMI you pay, into principal and interest components)
      2. Limit: This indicated the maximum amount you are eligible to borrow.
      3. Available balance: This reflects the balance of money parked/ debited by you in the OD (over draft account).
      4. Book Balance = drawing power – available balance. The actual interest payable by you, is calculated on a daily basis based on this amount.

      So answering your second query, while you can switch to SBI in the future, you will have to pay a processing fees etc to make the switch. Also, ICICI will not charge you any penalty etc for doing the same.
      I hope this helps you take a more informed decision, do let me know if I can help with anything else. We will be happy to assist you in the future 🙂

  33. 9949494829
    Jan 21 2016 at 10:38 pm

    is it possible to transfer home loan from bajaj finserv to punjab national bank ?

    • Tarini
      Jan 25 2016 at 2:17 pm

      hey Naveen

      Yes! you surely can switch your home loan from Bajaj to PNB. Our Home Loan Advisors will get in touch with your shortly to assist you further with the process details etc. Thank you for getting in touch with us 🙂

  34. Priyanka Sharma
    Jan 07 2016 at 9:40 am

    Hello ma’am, my husband has taken a loan of rupees 50 lakhs from hdfc for which our emi will start in June 2017.can I transfer this loan to canara bank in staff loan in my name.?

    • Tarini
      Jan 08 2016 at 2:40 pm

      Hey Priyanka

      Since your EMIs haven’t started yet, you will not be able to switch your home loan at present. You can go ahead with it once the EMI payments start.

  35. hemraj kodinariya
    Jan 06 2016 at 9:35 am

    my current housing loan is with shaurastra Garmin bank ( with floating rate ) now i want to switch other bank i want to now about below point

    1) I want to transfer it to other bank with lowest interest rate -> Please suggest me about charge of pre-payment penalty as per RBI

    • Tarini
      Jan 06 2016 at 3:27 pm

      hey Hemraj

      As per RBI rules and regulations, pre payment penalties on all floating rate home loans (irrespective of which type of bank the loan was taken from) have been removed.
      You can use our balance transfer calculator to find the cheapest bank to switch, and get a complete break up of all the savings and costs involved in the process. If you like you can sign up for our services have us do the entire switching process and formalities for you.
      I hope this helps 🙂

    • hemraj kodinariya
      Jan 09 2016 at 7:10 pm


    • Tarini
      Jan 20 2016 at 7:15 pm

      Hey Hemraj

      We’re happy to help! Do let us know if we can assist you with anything else 🙂

  36. RP
    Dec 28 2015 at 6:41 pm

    Hi Tarini,

    I have a home loan of 30 lacs with HDFC for a tenure of 20 years. I would either like to reduce the tunure to 10 years or switch to SBI with same amount, but with a tenure of 10 years. Kindly suggest.

    • Tarini
      Jan 06 2016 at 3:16 pm

      Hey RP

      Sure, you easily switch to SBI with a reduced tenure of 10 years, that shouldn’t be a problem at all. You can use our balance transfer calculator to see the exact amount of savings and costs involved in the process. If you like, you could leave your contact details behind to get a free home loan consultation or hire us to the the entire process for you 🙂

  37. Janardhan
    Dec 11 2015 at 10:16 am

    Madam as you know axis provides loan to buy site on agreement amount and not registration value. However SBI gives on registration value. So I had to go for axis. Now I want to switch to SBI. Will the entire be taken over? Or only that much will be provides as per registration. In that I cannot switch.

    Please guide me

    • Tarini
      Dec 14 2015 at 3:37 pm

      Hey Janardhan

      Since its a siwtchover case, SBI will take over the entire loan amount, irrespective of whether the loan was given on agreement value or registration value. If you like, you could have us do the entire switching process for you so that you go about your daily routine uninterrupted. You can use our balance transfer calculator to explore more options, or signup for a free home loan assessment by our Home loan adviser 🙂

  38. kiran damor
    Dec 01 2015 at 9:12 am


    • Tarini
      Dec 25 2015 at 4:24 pm

      Hey Kiran

      Yes, you can definitely transfer your home loan to another bank and get your EMI reduced. You can make use of our home loan balance transfer calculator to find the cheapest bank for yourself. If you like, you can leave your contact details and get a free home loan counselling with our Home Loan Advisers.

  39. Sunny
    Nov 27 2015 at 8:32 pm

    I was having a home loan and top on the home loan with the Maharashtra bank. While taking the top loan I followed the intimation of mortgage policy with the registrar office by paying 1000+300. Now I have transferred loan from Bank of Maharashtra to HDFC for the same property. Do I need to intimate the registrar office once again. I have already done this almost one and half year ago on the top up loan which I took from bank of Maharashtra.

    • Tarini
      Dec 10 2015 at 2:46 pm

      Hey Sunny

      Yes, you will have to the intimation registration once again. Please ensure that you do so within 30 days of the date of signing the loan agreement with HDFC bank. You can do the intimation online or can get HDFC to do the same for you, it should be a part of their home loan acquisition process.

  40. Manda Varzil Babu
    Nov 10 2015 at 5:04 pm

    Hi, I am having 20 lacks of home loan with SBI and later I topped it for another 9.5 lacks. but they considered it as new loan and i am paying two EMIs and witch is almost 35000. recently i saw the SBI portal they have new policy EMI @ 841 per Lack.. but they are refusing to combine my loan so that i can get less EMI. Now I want to change my bank, can you please suggest best among now. I am from Palakol, West Godavari, Andhra Pradesh. SBI 0892.

    Can I take from HDFC? how much its interest rate.

    • Tarini
      Dec 09 2015 at 2:43 pm

      Hey Manda Varzil

      1. At present SBI is offering the lowest interest rate of 9.55% in the market. So by switching you will end up spending more on your home loan in interest payments than before. However, you can always go ahead and switch to another bank if you are unhappy with the service. You can make use of our balance transfer calculator to find the cheapest banks to switch to 🙂

      2. Since you have taken a top up loan, it will be treated as a separate loan. The interest rate charged on top up loans is always higher than the home loan. Typically is can range from 1% to 2% higher than the home loan’s interest rate. This is a standard practice across all banks. It will not be possible to combine your home loan with the top up loan even if you switch your home loan to another bank.

      I hope this helps 🙂

  41. NITIN
    Nov 10 2015 at 8:08 am

    Hi Tarini.

    Good Morning. I had taken loan of Rs 2515000 from LICHFL in 2013 for 20 yrs at 24888 EmI at fixed rate of 10.25 fr 2 yrs and then floating. Now when the floating rates have applied, the interest part has gone up substantially. Moresoover on contacting the company for revising the interest rate in the light of recent repo rate cut by the RBI, they have refused to do so. I have no other option than to switch the bank. Will i be doing the right thing. Which bank will be the best to shift the loan to.

    • Tarini
      Nov 10 2015 at 1:25 pm

      Hey Nitin

      Here’s wishing you a happy Diwali 🙂 Regarding your query, yes, switching to another bank seems like a viable option in your case. at present, SBI is offering the lowest interest rate of 9.55% in the market. You can use our balance transfer calculator to compare lowest savings across several banks, this will help you get an exact break up of all the costs involved in the process too. I hope this helps 🙂 If you like, you can have us switch your home loan for you. Either ways you could sign up for a free home loan consultation by our Home Loan Adviser.

    Oct 26 2015 at 5:31 pm


    • Tarini
      Oct 30 2015 at 2:13 pm

      Hey Dipak

      Are you sure there was no cheque bounce and its a technical error in the bank’s system? If that’s the case then you can file a complaint with the bank asking them to rectify the situation as this will affect your credit score as well.
      Further, if nothing works out, then you can look at switching to other banks/ NBFCs (provided the cheque bounce happened 12 months ago). Here are a few options you can look at:

      Do feel free to get in touch with us in case of any further queries or developments in your case.

  43. Kiran
    Oct 09 2015 at 4:13 pm

    I have taken home loan from Gruh Finance in 2012 for tenure 20 years at outskirt of Nagpur. current ROI is 12.55% .
    I requested Bank for convertion of ROI to low interest rate but Bank is refusing to do it and not giving any reason why?
    PLease advice me what to do?

    • Tarini
      Oct 12 2015 at 1:40 pm

      Hey Kiran

      If your current bank is refusing to help you switch to a lower interest rate, then you can look at switching to other banks like SBI and ICICI (that are offering the lowest interest rates in the market at present). To find the cheapest bank to switch to, you can use our home loan balance transfer calculator 🙂

  44. Shibu Xavier
    Oct 07 2015 at 6:56 pm

    Dear Sir, I read about Maxgain SBI. looks good! I have some FD also, around 6 LAKHS planning to deposit in SBI so that principle amount will reduce, right? Which one you advise? Normal home loan or Maxgain. please advise.

    • Tarini
      Oct 07 2015 at 7:58 pm

      Hey Shibu

      While the interest rate being offered for SBI Maxgain is higher than that of a regular home loan in SBI, the advantage of having a Maxgain home loan is that you get an Over Draft (OD) Account with it. This OD account allows you to deposit all your surplus savings/ income etc. in the account, reducing yoru outstanding principal amount by the value deposited in the OD account.
      For example, if you have an outstanding principal amount of 29 lakhs and you have parked 6 lakhs in the OD account, then you will need to pay interest only on 23 lakhs (as long as you maintain that amount in the OD account).
      Another benefit of maxgain OD account is that you can withdraw money from it anytime you like.
      While I have listed out the benefits of both, its up to you to decide whether you prefer a lower interest rate or the OD facility of Maxgain. I hope this information helps you make a decision 🙂

  45. Shibu Xavier
    Oct 07 2015 at 12:52 pm

    Dear Sir/Madam,

    I have brought a flat @ Kakkanad – Kochi last year (April 2014). I taken loan from HDFC bank amount 30 LAKHS for 15 years, interest rate was 10.15. One of my friends adivised me that transfer the exixsting loan to SBI. How much i benefit for this process? Please advise.

    My balance priciple Amount is 29,00,323 INR
    Remaining month – 161
    Current loan HDFC Kochi

    • Tarini
      Oct 07 2015 at 5:28 pm

      Hey Shibu

      Judging by the interest rate your home is currently at, you should be gaining substantial savings as SBI is currently offering all regular home loans at 9.55%, and Maxgain home loan at 9.80%. To see the exact break up of savings and costs you will incur, please use our home loan balance transfer calculator. Do feel free to get in touch with us for any further queries.

  46. Praveen Srinivasan
    Sep 02 2015 at 1:03 am

    Hi Tarini,
    Need your expert advice on the below please.
    I got the home loan of 19L disbursed from HDFC and submitted the cheque to LICHFL for closure. This is take over loan from LICHFL. I was given some printout by HDFC with steps for doing the Intimation of mortgage and told to do within 30 days. Since i already got the cheque Is it mandatory to do this?…if not done what would be the implications…?

    • Tarini
      Sep 02 2015 at 2:38 pm

      Hey Praveen

      Its legally binding for any borrower in such cases, to complete the intimation process within 30 days of loan transfer. If not done, then you will be liable to pay a penalty of 2% of your outstanding loan amount to the government. Hence I would advise you to complete the intimation process within 30 days, and submit the receipt to your bank so that they have a clear record of it. I hope this helps 🙂

    • Praveen Srinivasan
      Sep 02 2015 at 11:44 pm

      Sure…I would start the process…Thanks

  47. John Smith
    Aug 23 2015 at 10:23 pm

    Hi Tarini,

    I am planning to buy flat which is free hold in Noida. Only private bank approving loan for the unit. One of private finance unit is HBFC ( House building finance Company limited ) who approving loan. They are doing disburse loan on high interest rate ( 12.50-13.50 % ). I want to confirm that If can I have option in this case to transfer loan from HBFC to any government bank in future.
    Request you to mail me on

    • Tarini
      Aug 25 2015 at 2:01 pm

      Hey John

      Regarding your query, PSU banks are not willing to give you a loan for this property at present, then they will not accept a loan transfer case for this property either. So it’ll be best if you try to approach PSU’s now, instead of harping on a possibility of loan transfer in the future.
      To clarify the situation further, most PSU’s like SBI do not generally approve loans in NOIDA/ Greater NOIDA due to the unavailability of certain permissions and documents by home owners in these areas, which are essential for SBI to process the loan.

  48. Manzil
    Aug 23 2015 at 12:47 pm

    Hi Tarini,

    I have a 3 year fixed rate of interest for homeloan. Now i want to switch to different bank. as there is prepayement penality of 2% i am thinking of a way out by paying 0.25 per cent as conversion fees for conervting my existing loan to floating and then takeover, then there would be no prepayment charges. So i end up paying 0.25% instead of 2%. I this plan fine or you see any issue in this.

    • Tarini
      Aug 25 2015 at 2:14 pm

      Hey Manzil

      This sounds like a fine plan indeed 🙂 But if you’re getting a lower interest rate in your current bank, why would you still want to switch to another bank? Do help me out understand your situation better 🙂

  49. Praveen Rao
    Aug 10 2015 at 9:02 pm

    Thanks..I had a word with one of your representative…I would touch base with him once i’m back from vacation. One more query…My EMI is deducted 5th of every month by LICHFL…my question is this emi they are deducting is for the present month or for the previous month. how will i know this?…if suppose it is for present month then i think i can wait this month before switching to other bank so that we can avoid paying interest to other bank…is my understanding correct Tarini?

    • Tarini
      Aug 12 2015 at 5:16 pm

      Hey Praveen

      The EMI is deducted for the the present month. Since switching home loan takes 2 – 2.5 months on an average, you will have to continue paying EMI’s to your existing lender until the process has been completed. If you stop paying the EMI’s then it will be accounted as a default in payment. This will affect your credit score and make it difficult to switch to SBI once you are on a floating rate. Do feel free to get in touch with us in case of any further queries 🙂

  50. Praveen Rao
    Aug 06 2015 at 6:32 pm

    Hello Tarini,
    Could you kindly help in my case? I’m from PUNE.
    I had taken loan of 2200000 from LIC 6 yrs back. Now planning to switch to HDFC.
    I got the loan sanctioned from HDFC. Now before disbursement they are asking for NOC from society if it is formed. In my case society is formed but the conveyance deed is not done by the builder to,the land ownership still lies with the builder. so in this case NOC has to be obtained from society or builder or both. Also, please let me know if the society can charge me for this NOC and if it does not provide me NOC what legal actions i can take.

    • Tarini
      Aug 07 2015 at 7:06 pm

      Hey Praveen

      In this case you can take an NOC from the builder. The society will not be able to give you NOC as conveyance deed hasn’t been transferred by the builder yet. Further, neither the society nor the builder should charge you for giving the NOC. Our Relationship Manager will get in touch with you shortly to run you through the entire process of switching home loan 🙂

    • Praveen Rao
      Aug 07 2015 at 11:56 pm

      Sure,Thank you so much for your reply…Much appreciated.

    • Tarini
      Aug 10 2015 at 11:50 am

      We are happy to help 🙂