If you are planning to transfer your loan to a new bank, here are the things you should consider to ensure that you don't regret making the move

Why Should You Shift?

If significant savings can be made with rates offered by another lender. If EMIs are high and the current lender refuses to increase the tenure and thus reduce the rate.

Check the Rate Charged

Make sure that the new bank has already increased its rates in the current wave of hikes. Transfer only if there is a difference of at least 50 bps. Move early in the tenure.

Negotiate with Lender

If there is a huge difference between the rate you pay and the one new customers pay, try to negotiate with the lender. Banks also offer conversion option for a fee.

New Bank's Conditions

Whether the new bank accepts your loan request depends on a host of factors, the most important being your repayment record with the previous lender.

Procedure and Costs

Get an NoC from your existing bank and a document on the outstanding principal. Besides the processing fee, there are some other costs involved in the transfer.