The well-known public sector bank, State Bank of India (SBI), has offered the option to move the balance of one’s home loan to SBI without any processing fee. The transfer can be made from private banks, foreign banks, Scheduled Commercial Banks (SCB), and Housing Finance Companies (HFCs) that are registered with National Housing Bank (NHB). The zero-processing fee feature is available only up to February 28.
In order to make the transfer, the home loan borrower will be required to have the relevant documents to prove ownership of the house or flat. Employers of borrowers can make the transfer in case the borrower is an employee of the Central or State government, or undertakings of the central or state government, or of a Public Sector Undertaking (PSU).
The balance transfer can be made only if the individuals meet the eligibility criteria as mentioned by the bank, provided regular payments of interests and instalments have been made to the existing account on a regular basis. Indians residing in India, aged from 18 years to 70 years, can make the balance transfer of one’s home loan to SBI, on the condition that the loan term is extended.
Under the balance transfer option offered for home loans, SBI also offers low interest rates, interest rate concession for female loan borrowers, elimination of prepayment penalty, interest calculation charged on the daily reducing balance, and home loan being offered as an overdraft.
SBI, however, imposes certain charges such as pre and post-sanction fees, advocate’s fee, valuer’s fee, etc.
Source: ET Now News