A home loan is a long-term commitment that usually may last up to 20 years. During this period, there are many things that may change like your personal financial situation, government policies, interest rates, and economic state. Owing to these reasons, it is crucial for you to keep a constant track on your home loan. Conducting a periodic review assists you to make a financially prudent decision in respect to home loan’s foreclosure, top up and balance transfer.

Balance transfer

To get the benefit of lower home loan interest rate or better service, you might want to transfer your existing home loan to another lender. For this, you need to timely review your EMI payment record and credit score. Having a good home loan payment record enhances your chances of availing home loan balance transfer options. Besides this, you must also keep handy certain important documents for a hassle-free process.

Crucial documents required for home loan balance transfer include KYC documents, existing loan papers, employment proofs, pre closure letter, NOC from lender, past repayment statement, etc. As home loan balance transfer is treated as a new application for home loan, you may have to pay certain fees and charges that you initially paid while availing your existing home loan. Note that before you opt for the balance transfer option, ensure to use the home loan EMI calculator to understand the savings on interest component you can get on this option.


You might consider foreclosing your whole loan or a part of your outstanding loan to reduce your home loan EMI or loan tenure. The sooner you take this step, the better it is as you end up saving higher interest costs. However, to be eligible for the foreclosure option, you must repay certain number of EMIs, post which you can opt for this route. By reviewing your home loan periodically, you can understand if you are eligible for the foreclosure option.

A written application for foreclosure or part prepayment must be submitted along with the loan sanction papers, address proofs and identity proofs. Zero charges are levied on making part payment of loan. However, few lenders may charge foreclosure fees in the case of fixed housing loan interest rate. It is crucial to take the custody of original property papers from existing lender upon home loan closure.

Top up

At times you might require additional funds to merge this with your existing finance to meet your dreams. Top up home loan is an additional funding option that is availed over and above your current loan proceeds from your lender. Top up home loan is disbursed if you have a strong credit score of 750 and above, good repayment capacity and excellent rapport with your home loan lender. To avail this option, you must fill up the top up form and submit it along with the income proof, identity proof, previous documents etc. A nominal processing charge may be levied on the top up home loan.

A top up home loan is not available to everyone who has availed a home loan. Various elements are examined and observed before approving the top up home loan option. These include your past repayment track record, your repayment potential, etc. Periodic review of your existing home loan allows you to understand your top up home loan eligibility chances.

Ending note

Purchasing a home is a dream that many aim to achieve. With a home loan, this dream can come true earlier in life. However, many of you might become complacent once you apply for a home loan and monthly deductions happen smoothly. However, being extremely relaxed at times may not be the wise choice.

A home loan is a commitment that extends over a decade, during which several alterations may take place. To make a financially prudent decision, it is crucial to timely review your home loan to understand if you are eligible for options like home loan balance transfer, top up and foreclosure.

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