Loan Balance Transfer Calculator
Switch to a lower rate. Calculate your monthly and total savings when you transfer your outstanding loan to a new lender.
Transfer Details
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Yrs
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Net Savings
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Monthly Savings: ₹6,033
New EMI
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Current EMI: ₹55,270
Break-even
Months
Time to recover fees
Transfer Insight
You will save ₹10,75,934 over the remaining tenure. This is a great deal!
Interest Comparison
Loan Balance Transfer Guide
A loan balance transfer is a smart financial move to reduce your interest burden. By moving your loan to a lender offering a lower interest rate, you can save thousands or even lakhs of rupees over the long term.
Checklist for Balance Transfer
- Interest Rate Gap: Ensure the new rate is at least 0.5% lower than your current rate.
- Remaining Tenure: Transfers are most beneficial in the early years of the loan.
- Processing Fees: Calculate the total cost of transfer, including fees and legal charges.
- Top-up Loan: Many lenders offer an additional top-up loan at home loan rates during a balance transfer.
New Lender
Research the new bank's service quality, digital capabilities, and future rate reset policies.
Eligibility
Your credit score and repayment history with the current lender are critical for a successful transfer.
Frequently Asked Questions
What is a loan balance transfer?
A loan balance transfer is a process where you move your outstanding loan amount from one bank to another, usually to take advantage of a lower interest rate or better service terms.
When should I consider a balance transfer?
You should consider a balance transfer if the difference between your current interest rate and the new rate is at least 0.5% to 1%, and you have a significant remaining tenure (usually more than 5 years).
What are the costs involved in a balance transfer?
The main costs include processing fees charged by the new bank, legal and technical valuation charges, and sometimes a small foreclosure fee if your current loan is a fixed-rate loan.
Will a balance transfer affect my credit score?
A balance transfer involves closing one loan and opening another. While it might cause a small, temporary dip in your credit score due to a hard inquiry, consistently paying lower EMIs can improve your score in the long run.
Monthly Savings
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Net Savings
₹10,75,934