Have you ever opted for guarantor loan? Do you think your friends and family will stand by you if you go for a guarantor loan? Well they probably would have refused a few years back but now becoming a loan guarantor is safe and secured. Taking guarantor personal loan is now a simpler and convenient task than before.

Previously there have been instances when a loan guarantor would be harassed by the bank demanding immediate repayment of a loan when the borrower failed to return the money on time. A person probably decided to be a guarantor on good
faith only to be issued a legal notice and even harassed at times by personal visit by bank officials to repay the loan for your friend.

WHAT HAPPENS WHEN ONE IS NOT ABLE TO RETURN GUARANTOR LOANS

• The personal credit score of the loan guarantor suffers
•  Negative marks assigned by a Credit Rating Agency
• Loan Guarantor’s name appears in bank’s defaulter list
• And if it is a big loan amount he/she will appear in RBI defaulter list as well 
• Reputation of the person and the family are also at stake

THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (IBC)

Well, now there is reason to cheer! Now, the guarantor can heave a sigh of relief with the operation of “The Insolvency And Bankruptcy Code, 2016” (IBC) which came into force with effect from 15th December, 2016 under which the first case was admitted on 17th January, 2017.

The new recovery law gives hope not just to lenders for quick recovery of their dues but also to different sections of the society. Under this law, any creditor with an unpaid payment of Rs.1.00 lakh can initiate recovery proceedings against the defaulting Company at the National Company Law Tribunal (NCLT).

Though timebound, the new law provides a refreshing change and makes it easier for creditors to recover guarantor loans faster. Any new law has some teething problems and takes its own time to be absorbed. However, if all stakeholders adopt it and refer to it for a resolution the law is sure to succeed. So now if you want to be a guarantor for your friend or family who wants to take a guarantor personal loan, you can do so with ease!

The RBI has made it mandatory for all NBFCs (Non Banking Financial Companies) to have a grievance redressal officer, whose name and contact details have to be mandatorily displayed in the premises of the NBFCs. Aggrieved borrowers who have home loan complaints can approach the grievance redressal officer of the NBFC to file a complaint. A three-tier system is functional in this regard.

a) Tier I (customer service department of NBFC)
– Call toll-free number
– Send SMS
– Send email
– Send letter (hard copy)
– Visit website and register your complaint/grievance online

– You will get a customer service number

b) Tier II (if no response is received within six weeks of your complaint or you are dissatisfied with the reply received)
– Email/write to the grievance redressal officer or GRO (of the NBFC) with a copy of your grievance and the reply, if any, received at Tier 1

c) Tier III (if you are unhappy with the reply received from the GRO)
– Approach the below on the prescribed format:

Complaint Redressal Cell
National Housing Bank (regulator for NBFCs)
Online link for home loan complaint

https://grids.nhbonline.org.in/

By post you can send your complaint to:

National Housing Bank
Department of Regulation & Supervision
(Complaint Redressal Cell)
4th Floor, Core-5A
India Habitat Centre
Lodhi Road, New Delhi 110003

A home loan makes the process of buying a home easy. You can always find a home loan that has low interest rates along with other value-added services. The interest rate of the loan is a matter of great consequence to the borrower. Even a slight increase can disturb the finances of the borrower significantly. If you find that your home loan isn’t offering the best rate of interest, especially when compared with other home loans in the market then the smartest thing to do is carry out a home loan transfer to another lender, to benefit from the new loan’s terms.

When should you opt for home loan balance transfer?

Usually, you shift your home loan balance to another lender when you feel the rules of your current lender are unfavourable and are not ready to negotiate. However, you can have many reasons for transfer, but the main reason for balance transfer is high interest rate. This may be due to the presence of many other reasons such as stringent rules, a lot of extra charges and poor customer service.

It is best to transfer home loan balance in the initial years of your term. This is because initially the share of interest in each EMI is much higher than the principal. So, this is the time when you can get the most benefit by falling interest rates. Also, remember that for transferring the balance you may have to pay a fee to the new lender and pay the processing fee again. So, keep these numbers in mind, understand your total benefit and decide accordingly. This guarantees that your balance transfer will actually help you in saving.

Home Loan Transfer Benefits

1) Low Interest Rates

The main reason why borrowers opt for a home loan balance transfer is lower rate of interest offered by another lender.

2) Better terms in prepayment
Your new lender can provide additional benefits such as easy pre-payment and foreclosure at no extra charge. This makes repayment easier.

3) Better accessibility
Some banks offer online transfer making it easier for borrowers to complete the transfer process smoothly and without any hassel.

Additional Benefits
Your new lender can provide you with many additional features like top-up loans, which you can use for many reasons including renovation of your house.

To learn more about eligibility criteria and process of transferring the home loan, click here