What are the benefits of an IOHL?
There are many benefits of transferring your home loan to Standard Chartered Bank’s IOHL:
1. Take advantage of lower monthly payments during the initial period:
Home loan EMIs tend to cut a chunk in your monthly income and cash outflows. It can be difficult to manage if you have a life circumstance that requires you to spend a lot of money. It could be a medical emergency, the birth or schooling of your child, or even a home renovation. You can take advantage of the initial lower monthly payments to manage your expenses effectively.
2. Pay lower initial EMI till you can afford the entire amount:
You can put the differential amount into a different investment during the interest-only period that can offer good returns.
For example, you may invest in a fixed deposit, a mutual fund, or any such investment that will offer you good returns. You may even put the money towards investing in your own business for self-employed individuals. By doing this, you may be able to plan and manage your financial goals better.
3. Flexible repayments:
The interest-only period set by Standard Chartered Bank is upto three years. However, if you want, you can start repaying the principal amount before that. So, the IOHL has a flexible repayment schedule that you can use to your benefit.
4. Optimal loan for property:
You can get up to 80% of the property value by choosing Standard Chartered Bank’s IOHL.
There is a long loan tenure of 30 years for salaried individuals and 25 years for self-employed individuals. So, you get a long tenure to pay off your loan amount with ease.
How to transfer your home loan to Standard Chartered Bank’s IOHL?
The process of transferring your home to Standard Chartered Bank’s IOHL is very easy.
- Put in an application with your current lender for a balance transfer via a form or a letter.
- Your lender will prepare a No Objection Certificate (NOC) or Consent Letter, which you have to collect from them. This NOC or Consent Letter has to be provided to Standard Chartered Bank at the time of your application.
- Visit a Standard Chartered Bank branch to collect an application form that you will need to fill up very carefully.
- Submit the form along with the NOC or Consent Letter and other essential documents such as your KYC documents, property papers, and loan balance and interest statements.
- Once all the required documents are submitted to Standard Chartered Bank, you will have to wait for confirmation from your old lender regarding the closure of your loan account with them.
- Once the old loan account is closed, you will sign a new home loan contract with Standard Chartered Bank and pay a small processing fee. Once these formalities are complete, you can start paying the next month’s monthly payment to the bank.
The bottom line:
A simple home loan balance transfer can bring ease to your life and finances in many ways. To enjoy the benefits of initial low monthly payments and convenience, choose Standard Chartered Bank’s IOHL today!