Pune: A home loan balance transfer allows you to refinance an existing home loan through a new financial institution that offers you a more affordable interest rate.
Making use of this facility can be profitable, especially if the difference in interest rates is substantial, and you have just started making repayments. Apart from making repayment more economical, a home loan balance transfer helps you get access to additional financing via a top-up loan.
Offered by lenders like Bajaj Housing Finance Limited (BHFL), these top-up loans can be used for any allowable purpose you desire, even to consolidate debt. In fact, it can be a very smart way of tackling mountains of higher EMIs as it offers you an affordable interest rate and convenient repayment terms. Here’s a look at the benefits in store when you consolidate debt by carrying out a home loan balance transfer with Bajaj Housing Finance Limited and
availing a top-up loan.
Top-up loans offer to fund over and above your home loan sanction. Therefore, you can obtain one without the additional hassle of extra documentation. Also, since a top-up loan works as an extension of your home loan, the interest rate applicable is extremely nominal.
You get these benefits along with a substantial loan amount. For instance, you can get a top-up loan of up to Rs 50 lakh when you transfer to Bajaj Housing Finance Limited’s Home Loan. You can then utilise this top-up loan to consolidate other high-interest debts like personal loan EMIs or higher credit card bills.
When addressing multiple debts, you have to keep track of more than one payment date. After consolidation, you have just a single EMI to take care of. Also, while the substantial top-up loan amount lets you consolidate all your debts in one go, the repayment terms ensure that this doesn’t cause any stress.
You can bring down your monthly obligations by opting for a long tenure. For example, if you have 15 years left on your home loan tenure, you can refinance your top-up loan over a maximum term of 15 years. When you space out your EMIs over a greater number of years, the value of each individual EMI decreases, making them easier to manage.
With one of the best housing loan interest rate in India, Bajaj Housing Finance Limited’s home loans are affordable and easy to repay. In case you find yourself with surplus money, you can make prepayments towards the loan and ultimately reduce the total interest.
This is advantageous because prepayments are towards the principal amount. Once the principal is lower, interest is automatically lower and your EMIs are more economical. You can enjoy this facility when you opt for Bajaj Housing Finance Limited’s Floating Rate home loan.
Apart from the home loan tax benefits that you can claim under various sections of the Income Tax Act such as Section 80C and 80EE, you can also claim the interest that you pay towards the top-up loan as a deduction under section 24, up to Rs 2 lakh per annum. On the whole, this helps lower your cost of taking on credit.
When you’re planning to refinance your home loan and avail BHFL’s Top-Up Loan to consolidate debt, make use of the home loan balance transfer calculator. This tool lets you know the quantum of funding that you are eligible for based on factors like your property’s location and your existing home loan details. While the calculator gives an indicative figure, you can view your pre-approved loan offer from BHFL. Single step-verification expedites disbursal too.
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