A Checklist of Documents Required for Home Loan Balance Transfer for a Seamless Transition!

A home loan balance transfer is a facility where you can transfer your home loan from one lender to another to avail the benefits of lower interest rates and better features. Documentation is an important step of a home loan balance transfer. It is necessary to have all the required documents handy to make the process easier and faster. Here is a checklist of the documents required for home loan balance transfer:

• KYC documents

For KYC documents, you would need to submit address proof and identity proof. You can submit the following as address proof:

• Passport
• Voter ID card
• Driving licence
• Aadhar card

Similarly, the following documents can be submitted as Identity proof –

• Voter ID
• Driving licence
• Job card
• Aadhar card
• PAN

• NOC from the lender

NOC is probably the most important document for transfer balance. You would need a No Objection Certificate from your existing lender, where they certify that you have no pending dues and you do not owe them any more money. Through this document, they would also confirm that they no longer have any lien on the property.

• Income documents

Along with the KYC documents, the lender would also ask you for your income documents. As it is a fresh loan, they would want an assurance that you would be able to repay the loan and have enough income source for the same.

If you were a salaried applicant, you would need to furnish Form 16, the latest salary slip, and a bank statement of the salary account for the last six months. If self-employed, you might have to submit the current account statement of the business account, income tax returns of the last two years, balance sheet, and profit and loss account certified by a Chartered Accountant.

• Post-dated cheque

When you are transferring the loan, the new lender might ask you to submit one post-dated cheque.

• Property documents

You would need property documents like sales deed, property purchase documents, a copy of the approved plan, etc.

• Letter of consent

It is vital to get the consent of the existing lender for the transfer. You would need a consent letter from the lender, where they certify that they have no objection transferring the loan.

• Existing home loan documents

You would need to hand over the old loan documents to the new lender. The new lender could ask you to submit a loan sanction letter, loan agreement, loan foreclosure letter, home loan statement to date of the old loan.

• Home loan statement

The details related to the remaining loan such as the EMI prepayment statement and outstanding balance chart would be required to be given to the new lender for a balance transfer.

While this is a standard checklist for a home loan balance transfer, you must check with the new lender to know if any additional documents are required. Having updated documents while applying for a home loan balance transfer will help have a seamless transition and save your time and effort.