What is home loan portability and when is it useful: Liabilities change humans’ life. They may become different from others. In life, we may have to go through different stages which may be difficult. Capital or money is the main reason for it. In need of money to meet their daily needs borrowings have been done from other people. Many have taken bank loans or other finances to overcome their needs. For a middle-class family, their daily wages or monthly income will be the only source to meet the expenses of the family. They may have many debts to give.
After all, that debt is over, their account becomes zero. In this situation, they make think of loans they have taken. It may be to build a home or for education purposes or marriage cases. There is no other way to overcome those circumstances. A good job with a sufficient salary makes a man fulfill all his needs and enjoy happy family life. Life with liabilities with bank loans makes us asleep. Lifestyle diseases may begin in our bodies. They lead to dangerous situations.
Bank loans are tension-increasing debt that may follow us lifelong. Its life span is too long. The main problem with bank loans is interest. The interest rate is different for different banks. The 3/4 portion of the monthly amount we pay is gone to interest. This leads us to continue the process lifelong. Due to these liabilities suicide has taken place in many families. They are not able to face those situations. Many have lost their houses due to these liabilities.
Some may not be able to proceed with the terms and behavior of the bank. High interest may be payable to them. Some banks will not give overdraft (OD) to their clients. Certain people will not be satisfied with their bank due to certain criteria.
There is a solution to that problem. It is loan portability. You can change the loan from one bank to another without any other formalities. By following certain steps you can overcome it. Certain papers have to be submitted for this. The sanction advice will be given by the bank when you had given a loan from there. Along with this is the statement of the amount you have paid in the following years. The details about the loan must be taken from the bank. Now, these papers must be submitted in front of the manager of the bank you have selected to transfer your loan. After verifying the details the manager of the bank will discuss the interest rate, terms, and conditions of the bank.
This new bank will provide more benefits for you than the earlier bank. Your monthly EMI payment will be reduced due to low interest. Now the first process is completed. Next, the new bank will ask for other additional proof details such as a salary certificate, housing documents, income tax papers, etc. After all, conditions are perfect, the bank manager will sanction the loan for you. Now the new bank will close the liabilities of the old bank and all papers will be transferred by themselves. We no need to work behind it. It is done by two banks. The next monthly payment can be done in the new bank.
In some cases, it may be not able to pay for one month’s payment. Then hidden charges may be debited from your account. This may be one reason for loan portability. Job transfer issues, other loan schemes, etc may be the reason for this. So don’t be tense, if you are not able to pay the loan at a high-interest rate it can be simply solved.