Do the financial institutions permit the transfer of loan from one institution to other, and what is the fee charged for such transfer. When it would be better to transfer the loan?
Financial institutions allow the transfer of loan from one institution to another even though they don't want their existing loan accounts to be taken over by other institutions. However, the institutions charge foreclosure charges for such transactions in order to minimize such transactions. It is left to the customer to transfer the loan from one institution to another institution. He may decide based on the rate of interest and other benefits he gets from other institution while transferring the loan. Only after getting the approval from the new Bank such transfer is possible.