From 1st July onward major Banks like SBI, HDFC, ICICI and other major lenders will lower their home loan interest rates. What does this mean for you?
- ● If you are planning to purchase your first home, there can be no better opportunity than this to get a lower EMI and save lot of money.
- ● If you already have a home loan, this is the right time for you to opt for “Home loan Balance transfer” and lower the interest rates. Doing this will save a lot of your interest money.
Why should I opt for a Balance transfer?
In simple words, this opportunity will help you save a lot of money. Let us understand this through an example.
Name – Mr. Kumar
Home Loan amount – 25 lakhs
Loan Taken – 1st January 2019
Loan tenure – 20 years
Interest Rate – 8.99%
Monthly EMI – 20,000 (just an example)
So as we can see, Mr. Kumar took a home loan, 1.5 years ago. He still has to repay this monthly EMI for another 18.5 years. Due to the interest rate of 8.99% he is paying a higher EMI of 20,000 per month.
But after getting to know that from 1st July 2020, home loan rates will fall, Mr. Kumar checks for options. He realizes that one Bank is ready to offer him 7.5% on his loan. Remember that Mr. Kumar was paying 8.99% interest. This means he will be saving almost 1.50% interest. This means he will pay lower EMI.
Hence Mr. Kumar must opt for a Home loan Balance transfer.
Can every home loan borrower apply for a Balance transfer?
Yes. Every home loan borrower can apply for a balance transfer until the home loan tenure ends. But Ruloans highly advises you to check the cost of transferring your home loan from the existing bank to the new Bank. If the cost is more than the benefits, then there is no point transferring your home loan.
When is it the right time to balance transfer my Home loan?
Ruloans suggests that it is best to utilize this opportunity when your home loan is in the initial stages i.e. 3-5 years. If you have paid more than 40-50% of your home loan. then there’s no point balance transferring your loan. This is because you pay most of your interest amount in the initial years.
Where can I get the best deals on Home loan Balance transfer?
Ruloans is your one stop destination for Home loan Balance transfer deals. Visit our website, find the deal that suits your needs and get your loan approved quickly. We will always help you borrow right. So apply today and save lot of money.