Avail These Benefits By Refinancing Your Home Loan

Borrowers financing their residential properties with home loans, often avail balance transfer facilities to benefit from more affordable interest rates available on the financial market. When you refinance your home loan from an existing lender to a new one offering such interest rates and/or other benefits is a wise option in 2020.

Balance transfer facility saves customers from higher EMI payment for the following reasons –

• Lower interest payment

Shifting the outstanding home loan balance to a new lender charging lower interest rates reduces the EMI burden on the customer.

Borrowers can additionally consider increasing their EMIs to pay off the loan quicker.

• Flexible tenors

Borrowers can transfer their home loan account to new lenders providing flexible tenors. They can opt for a shorter tenor by paying higher EMIs and thereon reduce the total interest payment they are liable for, i.e. reduce the total cost of the loan.

Other benefits to opting for a balance transfer facility include the opportunity to avail extended financing in the form of top-up loans.

Individuals can avail of a top-up loan to extend the principal home loan amount. This facility ensures that customers do not face fund shortage while refinancing their residential property and if required, meet other financial obligations as well.

Note that a top-up on home loan is unsecured, does not come with any end-use restrictions and carry a lower rate of interest in comparison to existing home loan. You can utilize the funds for a varied range of financial benefits.

Additional Read: Know the Benefits of Switching a Home Loan