Home loans are complicated, let’s admit that. We all have a plethora of questions regarding home loans. One of the common questions that I have come across is ‘Can home loan be transferred from one person to another?’ I will help you out on this and tell you about home loan transfer, factors considered before transferring home loan and how to transfer home loan from one person to another.
Can home loan be transferred from one person to another?
Yes, home loan can be transferred from one person to another only if the owner of the property decides to sell the property to a new buyer. However, there is a proper process involved in transferring home loan from seller to the buyer.
The seller has to produce a letter depicting foreclosure of home loan to the buyer. If the transfer happens in the bank internally, then the buyer has to fill a new home loan application form and pay the applicable charges.
Note:
The home loan transfer can be done only if the lender approves of it. So you must confirm with the lender and ask can we transfer home loan from one person to another. If they allow it, you’re good to go.
Factors considered before approving the loan transfer from one person to another
Age
Income
CIBIL Score
Credit history
Stable source of income
Monthly expenses
Work experience
Documents produced
Collateral/ guarantee
If you are considering getting a home loan transfer from father to son, then the father can proceed to register a gift deed in the name of the son and transfer the ownership and loan to him.
I hope this was helpful and your question ‘can home loan be transferred from one person to another’ is answered now.
You can also keep a check on your home loan eligibility before getting a home loan transferred to your name. NoBroker helps you check your loan eligibility in just one click, here;
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Hi there,One of the most daunting questions that haunts the mind is what happens to the home loan after death. Who will repay the loan? Will the bank seize the property? Well, in most cases if there is a pre-existing home loan and the owner has died, the loan gets transferred to the legal heirs. So, in this context I will share with you the process of home loan transfer to another person.Get home loan from your preferred bank through NoBroker and avoid hefty paperwork!What is the process to home loan transfer from one person to another when the owner has deceased?If there is a co-applicant, the loan will be transferred to the co-applicant only. If there is no co-applicant then legal, that is, the son or daughter repays the loan. In this process, the bank contacts home loan guarantors and legal heirs to repay the EMI. In these conditions, it offers flexibility for repayment. You can go to the bank and request for restructuring the loans or make a one-time settlement. Any person who is taking the responsibility to take the home loan after the death of the owner should have a steady income. The bank will help you reset the terms as per your repayment capacity.This is another process for home loan can be transferred to another person. I know this is a bit off topic but I felt like sharing the information here. I hope you like it. Read more:How To Check Home Loan Eligibility In LIC?How To Check LIC Housing Loan Status?How To Pay LIC Housing Loan Online?
Hey Pal,To begin my answer regarding the query, can I transfer home loan to another person? I would like to say that it is conceivable, yes. A property owner has the option to assign the debt to another party if they decide not to continue making loan payments. However, that will only occur if the owner sells the house to a new buyer and arranges for the transfer of ownership to the latter.Now that you know can loan be transferred from one person to another, check out best home loan deals for your property on NoBrokerBefore the transfer, the owner, who is also known as the seller, must pay off his or her debt. Thus, the proceeds from the sale of the property to the new buyer can be used by the seller to pay off the loan. This type of transfer, known in the banking industry as an internal balance transfer, typically involves the same lender.I believe this clarifies your query about can loan be transferred from one person to another.Formalities involved in home loan balance transfer:
Instead of selling the property, the buyer must ask the current owner to provide a letter confirming the loan's foreclosure.
The buyer is required to complete the home loan application and pay the necessary processing cost.
A No Objection Certificate (NOC) from the developer or authorities is required.
The buyer must provide the lender with all of his documentation pertaining to his KYC and proof of income.
Given that the property will be transferred from one owner to another, a team of experts will evaluate it legally and technically. The value of the property will be determined by the technical assessment.
The loan amount will be given to the new buyer as part of the sales consideration.
The lender will issue a cheque to the vendor as payment.
The seller must also give the buyer photocopies of the property-related paperwork at the same time. The initial copies are with the lender.
After understanding whether can we transfer loan from one person to another, and the formalities involved in transfer, let me also highlight that the legal and technical verification, as well as the credit assessment, will go much more quickly with the same lender, hastening the execution of the transfer. It's because all of the property documentation would be with the same lender.Read More;Can I Take Home Loan After Personal Loan?Can We Prepay Home Loan after PMAY Subsidy?
If you are wondering is home loan transfer to other person possible or not, let me tell you that it is possible. A property owner has the option to assign the debt to another party if they decide not to continue making loan payments. However, that will only occur if the owner sells the house to a new buyer and arranges for the transfer of ownership to the latter. Before you understand how to transfer home loan to another person, the owner, who is also known as the seller, must pay off his or her debt. Thus, the proceeds from the sale of the property to the new buyer can be used by the seller to pay off the loan. This type of transfer, known in the banking industry as an internal balance transfer, typically involves the same lender.
How to transfer loan from one person to another?
For understanding how to transfer home loan from one person to another in India, the formalities involved in internal Home Loan Balance Transfer are as follows.
Instead of selling the property, the buyer must ask the current owner to provide a letter confirming the loan's foreclosure.
The buyer is required to complete the home loan application and pay the necessary processing cost.
A No Objection Certificate (NOC) from the developer or authorities is required.
The buyer must provide the lender with all of his documentation pertaining to his KYC and proof of income.
Given that the property will be transferred from one owner to another, a team of experts will evaluate it legally and technically. The value of the property will be determined by the technical assessment.
The loan amount will be given to the new buyer as part of the sales consideration. The lender will issue a cheque to the vendor as payment.
The seller must also give the buyer photocopies of the property-related paperwork at the same time. Original copies will be with the lender.
As you must be aware the majority of Indians choose to take out a mortgage to buy the home of their dreams. It is among the most typical loan forms in India. However, the main concern that the majority of people who are unable to make their mortgage payments have is: Can I transfer my home loan to another person? The answer is yes, as has been stated above by everyone. They can do this by selling the house to the new buyer, paying off their debt with that money, and transferring ownership into the buyer's name.Get a home loan at the lowest interest via NoBroker.
How do you transfer a home loan to another person?
There are various measures to take in order to ensure a smooth transition when transferring a house loan to another person.
To begin, the transfer must be approved by both the lender and the borrower.
Those who want to transfer the loan must verify with the lender that the loan receiver satisfies the requirements and is capable of handling the financial burden.
The procedures of the transfer, such as paperwork and documentation, must be finished after approval.
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Can home loan be transferred from one person to another?
Parth
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June 15, 2021
2021-06-15T11:08:13+00:00 2023-07-03T12:41:07+00:00Comment
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