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Importance Things To Remember While Preclosing Your Home Loan
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Written by Ms. Rakhi Narain
Imagine you have switched over to a new home loan lender nitially, it seemed you are saving lacs with low-interest rate, offered by the new lender. But later you find out you are making a loss in the long term because the low-interest rate was clubbed with long tenure thereby making your savings balance sheet go negative.
The feeling of repaying your home loan early or transferring the existing balance to a new lender can be satisfying. However, you need to keep in mind certain important things before your home loan preclosure to make out a right decision.
A customer may want to foreclose his account under the following circumstances:
- Balance Transfer to another bank/Financial Institution FI
- Availability of sufficient funds to prepay & close loan
- Disposing off the property
In case of the last two cases, not much of concern has to be borne by the customer except obtaining a No Due Certificate from the lending bank/FI along with his/her original documents of the property he/she owns.. However, if the customer closes his account because of a Balance Transfer, he needs to ensure:
1. Effective rate of interest ROI: One of the main reasons for a customer to switch his account or balance transfer his home loan is better interest rate. Customer must ensure that new rate he is getting is better than the one he is availing at the moment. Customers can also seek better rates from the current lender, considering his payment history & track is good.
2. ROI type: Customer must check if the offered interest rate is floating or fixed; fixed calls for foreclosure charges, if any. Rates can be a combination of both, fixed & floating, basis case type.
3. Processing fee and other charges - Customer has to incur the processing fee & other charges again while transferring the loan. A deep thought has to be put in & all costs have to be calculated well while making a BT
4. Loan tenure: The current lender might charge you a higher interest rate as compared to the offered rate from the new Bank/FI on your Home Loan. However, a customer needs to understand the calculation for the complete tenure of the loan which will give the total interest amount paid. The new lender might give a lower ROI, but with a longer tenure which might effectively charge you much higher interest amount by the end of your loan.
5. No Due Certificate & Original documents: Remember to collect the no dues certificate, unused cheques and original property documents.
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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IIFL Home Loans | Nov 15 1:00 PM
Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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IIFL Home Loans | Nov 15 1:00 PM
Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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IIFL Home Loans | Nov 15 1:00 PM
Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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IIFL Home Loans | Nov 15 1:00 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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IIFL Home Loans | Jul 07 2:30 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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IIFL Home Loans | Jun 01 12:45 PM
Home Loans
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Policies Increase the Efficiency of the Work Process!
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IIFL Home Loans | Jun 01 12:45 PM
Home Loans
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Policies Increase the Efficiency of the Work Process!
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Home Loans
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Home Loans
Tax Planning
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Home Loans
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IIFL Home Loans | Apr 06 5:45 PM
Home Loans
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What Are The Benefits Of Buying A House in 20s
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IIFL Home Loans | Apr 06 5:45 PM
Home Loans
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What Are The Benefits Of Buying A House in 20s
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IIFL Home Loans | Apr 06 5:45 PM
Home Loans
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IIFL Home Loans | Apr 06 5:45 PM
Home Loans
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Home Loans
Tax Planning
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Home Loans
Tax Planning
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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IIFL Home Loans | Feb 07 11:00 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Hacked!!! Why Indian Sailors Get a Loan Rejection?
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Home Loans
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Hacked!!! Why Indian Sailors Get a Loan Rejection?
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
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10 Things You Must Know About Home Loan EMI Calculator
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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IIFL Home Loans | Oct 01 11:45 AM
Home Loans
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IIFL Home Loans | Oct 01 11:45 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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IIFL Home Loans | Aug 05 12:15 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Whether taking home loan is a wise decision or not?
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Home Loans
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Whether taking home loan is a wise decision or not?
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Home Loans
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Whether taking home loan is a wise decision or not?
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Home Loans
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Yes, Every Home Loan Needs Insurance. Here Why
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IIFL Home Loans | Apr 14 11:30 AM
Home Loans
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Yes, Every Home Loan Needs Insurance. Here Why
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Home Loans
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Yes, Every Home Loan Needs Insurance. Here Why
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Home Loans
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Home Loans
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Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.