banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

Documents Required for a Smooth Home Loan Balance Transfer

By IIFL Home Loans | Published On Aug 07 2023 11:52 AM 1 min read 160 views 608 Likes
IIFL Home Loans

A home loan balance transfer is an excellent way to save money by switching to a new lender with better terms and conditions. IIFL Home Loans is one such lender that offers a balance transfer facility at competitive interest rates.

The procedure for a home loan balance transfer is not so different from applying for a new loan. Accordingly, it requires thorough documentation. To help you be prepared for a hassle-free experience, we have prepared a checklist of documents required for home loan transfer and explained why they are important.

List of Documents Required for Home Loan Balance Transfer

At IIFL Home Loans, your loans get sanctioned in less than a day. On your part, all you need to focus on is preparing the list of required documents and keeping them handy. Here are the home loan transfer documents you need for a smooth and hassle-free process:

1. Identity proof to establish your authenticity

To initiate the balance transfer process, you'll need to prove your identity. Be ready with your PAN card, which is mandatory. Apart from this, any of the following documents can serve as ID proof:

  • Aadhaar card

  • Passport

  • Driving license 

  • Voter ID card 

If you wish to avail of a home loan balance transfer through the PMAY (Pradhan Mantri Awas Yojana), you may furnish any of the following documents as well:

  • Photo ID card issued by a governmental body

  • Letter of verification from a recognised public authority/public servant with a photograph (no older than 30 days old)

2. Address proof for accurate contact information and smooth communication

Next, provide a copy of valid address proof. These can be any of the following:

  • Aadhaar card

  • Driving license

  • Passport

  • Voter ID

3. Income proof to demonstrate your income stability and repayment ability

Your new lender is going to require assurance to guarantee that you have the financial capacity to repay the loan you are taking. Acceptable income proofs for a home loan balance transfer are as follows:

Salaried

Self-Employed

Salary slips for the last two months

ITRs for the last two financial years

Form 16 or Income Tax Returns (ITR)

CA-certified balance sheet, profit and loss account, and all applicable annexures

Bank statements for the last 12 months

  • Six months' account statements of the business entity

  • Six months' personal savings account statements

4. Property documents to evaluate the property's legal status and market value

Get an approved property plan if it’s under construction

The following documents can help your new lender assess the property's market value and ensure there are no legal issues associated with it:

  • Copy of complete chain of property documents, including the original sales deed or allotment letter, previous loan agreement, repayment track record, occupancy, etc. 

  • Copy of the approved property plan (if the property is under construction)

5. Loan statement to determine the transfer amount and evaluate your eligibility

Accurate loan statements allow for precise calculations and minimise the chances of discrepancies. Obtain a recent loan statement from your existing lender that reflects the outstanding loan balance, repayment track record, and other essential loan details. 

To be eligible for a home loan balance transfer, you should have paid off your EMIs for at least 12 months without ever defaulting. You will also have to submit bank statements for the last 6 months.

6. NOC from Current Lender as formal approval of the transfer

Secure a No Objection Certificate (NOC) or Consent to Transfer from your existing lender. Along with this, you will also have to submit the list of paperwork from a financial institution for a successful balance transfer.

7. Foreclosure Statement to close off the old loan

Request a foreclosure statement from your existing lender. It should outline the outstanding loan amount, prepayment charges (if any), and other relevant details. You will receive it when your new lender pays off the balance of the remaining loan amount to your former lender.

Now that you know the essential documents, here’s why proper documentation is essential to the home loan balance transfer process:

Why does proper documentation matter?

Importance of a document checklist
  • Credibility and Trust: Clear, accurate and complete documentation builds trust between you and the new lender. It assures them that you are a reliable borrower who takes the loan process seriously.

  • Eligibility Assessment: Lenders carefully evaluate the documentation to assess your eligibility for the loan transfer. Providing the required documents on time expedites the evaluation process.

  • Smooth Transaction: Proper documentation minimises the chances of delays, rejections, or miscommunication during the transfer process. It ensures that all necessary information is available to complete the transaction smoothly.

  • Compliance with Legal Requirements: Documentation ensures compliance with legal and regulatory obligations. It protects both parties involved and creates a legally binding agreement that safeguards your interests.

Final word

There you go! You are now equipped with the knowledge regarding the essential documentation required for a home loan balance transfer in India. Remember, proper documentation not only simplifies the process but also establishes trust and credibility with the new lender. So, gather your documents, dot your i's, cross your t's, and get ready to embark on a seamless home loan balance transfer journey with IIFL Home Loans.

Be sure to read more on our website or talk to a financial expert. If need be, secure a better deal for your home loan by applying for an IIFL Home Loan today.

FAQs

1. How do I apply for a balance transfer to a new lender?

  • Go to your lender’s website and locate their application form. 

  • You may also send an application for a home loan balance transfer in letter format.

  • At IIFL Home Loans, a representative will reach out and help you through the application process. 

  • Once you have the application form, enter the requested details.

  • Fill in your income, employment, and property details accurately. 

  • Submit the form and await your lender’s approval.

  • Upload the documents required for home loan balance transfer. 

2. What are the eligibility criteria to apply for a home loan balance transfer?

  • You should have a running loan. 
  • You should have paid 12 months’ EMI before applying.
  • You must never have defaulted on your repayments. 
  • Your property must be registered, whether it’s under construction or ready to move in. If it’s under construction, you will have to produce a copy of the approved plan. 

3. Do self-employed individuals need to submit different income proof documents for home loan balance transfer?

Most home loan transfer documents are largely standardised, whether you are self-employed or salaried. A CA-certified balance sheet, proof of business, your ITR returns, your bank statements, and business account statements are some standard income proofs you must submit for a home loan balance transfer if you are self-employed.

4. Do I have to pay anything during a home loan balance transfer?

Yes, there may be processing charges as part of transaction/legal handling services.

Tags

apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

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.