Yes, you can definitely switch your Home Loan to another lender- a bank or an NBFC. When the rate of interest charged by your current lender is high, you can look for alternative lenders offering a better rate of interest and initiate a Home Loan balance transfer (also known as loan refinancing).
You will have to apply for the same with your current lender, stating the reason why you wish to refinance your loan. Once the old lender gives the green signal, you can transfer your Home Loan account to the new lender. The subsequent process is similar to applying for a fresh Home Loan wherein you have to submit all your documents and pay the necessary one-time dues (like loan processing fees) again.
Before you apply for a Home Loan balance transfer, you should assess where you stand in the loan repayment schedule with your previous lender. In the initial stages of repayment, your EMI consists mainly of the interest charged by the bank and in the subsequent years, you repay the principal borrowed. It is advisable to opt for a Home Loan balance transfer in the initial stages of repayment as only then can you save the most on the interest.
