Monthly Archives: March 2017

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Pros and Cons of loan take over

We as borrowers might get very excited and happy about lower interest rates and would want to transfer our existing loan to a new bank , but there are many factors we must keep in mind while going in for loan take over.

  1. Calculate the total amount  you would be paying after you get a take over of loans. Do your maths properly before going in for take over. It’s always the interest part that we pay to the banks first so always do your calculations wisely otherwise you would not be in winning position, rather it would be a silly decision.
  2. Check how much loan amount you would be transferring vis a vis your collateral’s valuation. If your loan amount is small then keep aside the security double the amount for some other bigger loan you would want in future and provide another collateral.
  3. Just check the other charges like processing fees or allied charges or another new bank account you are asked to open and compare these with the lower interest rates you would be getting.


Whole idea should be to get your calculations right before taking any decision on take over of your loans. Decide wisely.

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TakeOver of loan. Why is it viable

After the PM Narendra Modi announced subsidy in pradhan mantri awas yojna (PMAY) , the interest on home loans have considerably gone down resulting in lower EMIs. This could be the best time for take over of your present home loans if you are not happy with your present bank.

In a layman’s language, take over of loan would simply be transferring your remaining loan amount from your present bank to another bank due to various merits it may accrue to you.If we talk of benefits of loan take-over, there certainly are many like :
1. Due to lower interest rates by other banks or
2. Poor lending services by present bank or
3. Your need for additional loan amount etc.

Question may arise which all loans can be taken over by the banks. Following are the loans that can be taken over by another bank.

1. Home Loans/LAP (for business and salaried class both)
2. CC/OD limit ( for business class )
3. Car Loans (for business and salaried class both)
4. Personal loans (for salaried class only)

Are you eligible for the take over of your loan? It depends on many factors like.

1. Client should be having valid documents about title of the property in case of home loan/ LAP take over for higher amount to be taken.
2. Client should be eligible as per the bank norms for additional loan amount.
3. Client should have paid off his instalments with earlier bank regularly.

So the take over of loans would be good idea in case you are eligible and your present bank is not meeting your requirements and expectations.