Loans · Calculator
Should you balance-transfer your loan?
Even a 1% lower rate can save you ₹2-5 Lakh on a 15-year home loan. But processing fees + foreclosure penalty + paperwork eat into the savings. See the actual maths — including breakeven months.
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Switch costs
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✓ Worth transferring
Net saving ₹2.5 L
Breakeven in 12 months — switch costs ₹17,500 recovered via lower EMI savings.
Current EMI
₹26,106
At 9.5% over 180 months
New EMI
₹24,618
At 8.5% — saves ₹1,487/month
Total interest saved
₹2.7 L
If you stay full tenure on the new loan
Switch costs
₹17,500
Processing + foreclosure + other one-time
When to transfer (rule of thumb)
- ✓Rate difference ≥ 0.5% AND remaining tenure ≥ 5 years
- ✓Breakeven happens in < 30% of remaining tenure
- ✗Don't transfer if < 3 years remaining (paperwork + lost time not worth it)
- ✗Skip if new lender's processing fee > 1% AND rate diff < 0.75%
Indian-context regulatory notes
- •RBI rule: zero foreclosure penalty on floating-rate home loans for individuals (since Oct 2014). Penalty applies on fixed-rate or business loans.
- •Personal loan transfers typically allowed after 12 months; foreclosure penalty 2-5%.
- •Education loans (under govt scheme) — usually free balance transfer; check moratorium rules.
- •Negotiate fees: processing fee is often waivable for HNI customers or via end-of-quarter sales push.
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