Planning to switch over new Home Loan with low rates? Few Things to Know

All About new Home Loan with low rates

Home Loan is a loan opportunity that helps an individual to borrow the house of his dreams. However Home Loan borrowers have the golden opportunity to switch over the loan with low interest rates either by converting or changing the existing loan. It all depends upon the loan applicant whether he wants to opt for increasing EMI or the tenure period of the loan.

Following are the few steps that will guide you to change your Loan plan easily:

Submission of Request Letter:

One you have decided finally to convert your existing Loan plan, you will  submit a request letter to the nearest branch office. The lender might ask you for a note called a promissory note for your payment of the balance at a new Interest Rate.

Conversion Fee: If you have planned to move your existing loan, get ready to pay the fee of conversion. Banks will charge a certain percentage of conversion fees in the range of 0.25 to 1 % of the total loan. This conversion fee should be paid in the form of Cheque along with other documents for the first time.

Bank Analysis:

Once you have submitted all of the documents banks will verify all of your documents. If a bank finds you genuine, you will achieve a confirmation letter. Along with this letter bank will attach a letter in which all of the terms and conditions are revised thoroughly.

Submit Fresh Cheques:

In case you have decided to increase the monthly installments or EMI you will have to submit new EMI’s.

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