TakeOver of loan. Why is it viable

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.