Splurging home loan to the homeowners has turned out to be one of the major sources of business. The attention for all prospects is offered at an extremely lucrative interest rate along with plenty of add-ons like life insurance, motor insurance, etc. This is called divesting portfolio and in today’s environment businesses do a lot of things to stay ahead and in order, also to leverage sources of income. Bank Loan Transfers have been initiated in the market by all major banks that hold the power to borrow Home Loans to switch banks. This is a lucrative aspect that can be leveraged by the borrower as it may offer him or her a chance to save some money and be a beneficiary in the process for several benefits offered as add-on services by the new bank.

To avail home loan balance transfer and top up, you will be asked to fill out an application form along with the proof of necessary calculations. This is processed by the new bank or some financial institution that will ultimately lead to diminished monthly repayment amounts and better quality of service.

Though the process appears simple superficially, intricately it holds a lot of things, which act as hurdles in home Loan balance Transfer and top up. Here are some of the common hurdles faced by people during the process:

• Highly time-consuming and complicated: The bank almost always takes a very cautious approach and will provide you tons of application forms to fill accompanied with an extensive and exhaustive list of documents that require furnishing. After this phase comes the major difficult part where scrutiny happens post which the process gets all the more complicated. Hence it is always suggested that before you decide to go on-board with a bank for a loan transfer, understand the pros and cons of indulging with a bank.

• A one-sided risk for the bank or financial institution: The bank may at times reject your loan application as no real advantage is going to be leveraged by the bank. The person might be presented with a better rate of interest, but the transfer of ownership doesn’t happen to the bank, this seems inconsequential to the bank.

• Levying a Signing fees: Along with the challenging paperwork, the banks might also charge you a fresh processing fee that varies from banks to banks. Before signing on and agreeing to any term, ensure that the savings that you hold support that fee well which will be incurred. If the savings are not considered after switching it makes absolutely no sense going through this hard work again and again.

• Previous banking institutions or financial institution may cause troubles: Rarely does it happen, but it may happen that the bank which is going to lose one of its customers would try to create some hurdles and try and delay your departure. It is mandatory for you to obtain a no objection certificate from the previous bank, hence it can pose as a trouble.

Home loan balance transfer and top up requires a clear understanding between bank and borrower. The co-borrower must also approve of the switch in bank loan. Co-borrower might be staying in some other country or city in that case he/she won’t be attending the formalities that require presence of both the parties. Since, the new lender will consider you as their new joined customer you will have to ensure you follow all the related procedures and fill all the forms again. The task may seem tedious but be sure to follow the rules and righteously fill forms.