Loan Balance Transfer Calculator
Should you transfer your home loan to a lender offering a lower rate? Calculate exact savings, break-even point, and net benefit after fees.
Current Loan Details
₹
Remaining loan balance to be paid%
Your existing lender's annual ratemonths
= 15 years New Lender Details
%
New lender's offered annual rate% of outstanding
New lender's one-time processing fee📊
Enter loan details to evaluate balance transfer benefit
About Loan Balance Transfer Calculator
A loan balance transfer means moving your outstanding loan from your current lender to a new lender offering a lower interest rate. While the lower rate saves interest, there are processing fees and costs involved — this calculator helps you decide if the switch is truly worth it.
When Should You Transfer?
- The new rate is at least 0.5% lower than your current rate.
- You have a significant outstanding balance (typically ₹20L+).
- You have enough remaining tenure to recoup the transfer fee (usually 3+ years).
- The break-even period is within your remaining tenure.
Costs to Consider
- Processing Fee: New lender charges 0.5–1% of the outstanding loan.
- Foreclosure Charges: Some lenders charge 1–2% for early closure (not applicable for floating rate home loans per RBI).
- Legal & Documentation: ₹5,000–₹15,000 for property document transfer.
- MODT/Stamp Duty: State-specific charges for new mortgage registration.
RBI Rules on Balance Transfer
- For floating rate home loans, existing lenders cannot charge prepayment or foreclosure penalty.
- Fixed rate loans may still have foreclosure charges — check your loan agreement.
- Your CIBIL score impacts the rate offered by the new lender.
Steps to Transfer
- Get a Foreclosure Letter from your current lender showing outstanding balance and principal.
- Apply for a new loan with the new lender by submitting income and property documents.
- New lender disburses the amount directly to your existing lender.
- You start repaying EMIs to the new lender.