How to Transfer Home Loan from One Bank to Another

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Anjali Singh

11 mins read

Published: 4 August 2025

Updated: 4 August 2025

A home loan is a long-term journey. It is natural for you to want the best deal with it. If the current interest rate is high or you are not satisfied with their service, it might be time for a change. What many people don’t realise is that a home loan transfer can offer real benefits. It allows you to shift your existing loan to another bank that offers better terms. It can be like lower interest rates, improved repayment options, and more flexibility. 

So, let's discuss how to transfer home loan from one bank to another, the documents required, and how to make the most of this opportunity. 

What is a Home Loan Transfer?

A home loan transfer or a home loan balance transfer means moving your current home loan from one bank to another that offers better terms and benefits. This can include quick processing, lower EMIs or even a top-up facility. It's a strategic financial move when done at the right time. 

When Should You Transfer a Home Loan?

You should consider transferring your home loan if:

  • Your current lender charges a high interest rate compared to market standards.
  • You find a lender with significantly lower interest rates or better loan terms.
  • You want to consolidate all loans under one lender for ease of repayment.
  • You're facing poor customer service or hidden charges.
  • You require a top-up loan and your existing lender’s criteria is restrictive.
  • But before you make the switch, take a moment to weigh the costs of the transfer against how much you’ll actually save. It only makes sense if the savings truly add up in the end.

Benefits of Home Loan Transfer

A home loan transfer isn’t just about better interest rates. It also means:

  • Lower EMIs due to reduced interest rates
  • Top-up loans available with ease
  • Flexible repayment options
  • Better service and digital tracking
  • Minimal paperwork with online processes

My Mudra simplifies the process by helping you compare and apply for SBI home loan balance transfer, ICICI home loan balance transfer, HDFC home loan balance transfer, Axis Bank home loan balance transfer, and more.

How to Transfer Home Loan from One Lender to Another

Let’s walk you through the process of how to transfer home loan from one bank to another:

Step 1: Review Your Current Loan Terms

Start by checking your outstanding amount, interest rate, EMI and any prepayment charges.

Step 2: Compare Other Offers

Use platforms like My Mudra to compare. We help you compare current interest rates from top banks and NBFCs. You should also pay attention to hidden charges and processing fees.

Step 3: Calculate potential savings

Use an online home loan balance transfer calculator to see how much you could save. 

Step 4: Apply with the new lender

Once you've chosen a new bank, submit your transfer request. You’ll receive a provisional approval, after which documentation begins.

Step 5: Get NOC from your current bank

Request a No Objection Certificate from your existing lender. This document is mandatory for any balance transfer.

Step 6: Submit your documents

Provide the list of documents for home loan transfer to the new bank. 

Step 7: Loan Disbursal and Closure

The new lender disburses the outstanding loan amount to your old bank. Once your previous loan account is closed, your EMI cycle begins afresh with the new lender.

List of Documents for Home Loan Transfer

Here’s a checklist of what you will need:

  • Loan statement from current lender
  • No Objection Certificate (NOC)
  • Identity proof (PAN, Aadhaar card)
  • Proof of residence
  • Income proof (salary slips or ITR)
  • Employment proof (appointment letter or certificate)
  • Property documents (sale deed, title documents)
  • Passport-size photographs
  • Completed application form for loan transfer

All the documents should ideally be scanned and kept ready in digital format for quicker online processing.

Can a Home Loan Be Transferred to Another Person?

Technically, the answer is no. Unless the ownership of the property itself is also being transferred. In such cases, the new owner may apply for a fresh home loan to pay off the existing one.

Which Bank is Best for Home Loan Transfer? 

The best bank for a home loan transfer depends on several factors. It can be like if you’re seeking the lowest rate, easier documentation or better service. For example:

  • SBI home loan balance transfer offers a straightforward process
  • ICICI home loan balance transfer offers strong online tracking options
  • HDFC home loan balance transfer provides competitive rates for salaried applicants
  • Axis Bank home loan balance transfer has flexible tenure options and a quick turnaround

My Mudra lets you compare these offers at a glance and choose what's right for you.

Why Choose My Mudra for Home Loan Transfer?

My Mudra is your reliable financial partner. Here’s how we help:

  • Compare multiple lenders at once
  • Seamless digital application process
  • Expert support in preparing the required documentation
  • Transparent charges and real-time tracking
  • Special deals and faster approvals with partner banks
  • With over 10,000 Cr+ in loans disbursed and a strong network of over 90+ banks and NBFCs, My Mudra brings convenience and clarity to your loan transfer process.

Summing Up

 

If you're wondering how to transfer home loan from one bank to another, remember that along with its possibility, it is also very rewarding. Just make sure you consider all fees and use a trusted platform like My Mudra to get personalised loan assistance. Whether you're exploring a certain home loan balance transfer, switching lenders could ease your repayment journey and save you a significant amount over time.

Also Read:
- Get the Best Home Loan Rates for Your Dream Home
- How to Calculate How Much Home Loan I Can Get in 2025

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Anjali Singh Assistant Manager
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Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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