Key Takeaway
Transferring a ₹40 lakh home loan from 9.2% to 8.5% with 15 years remaining saves approximately ₹2.85 lakh in total interest , net of processing fees. Transfers are profitable when the rate gap exceeds 0.5%.
Home Loan Balance Transfer Calculator
Calculate potential interest savings and monthly EMI reductions by transferring your home loan.
Transfer Evaluation
Advertisement
Frequently Asked Questions
When should I consider a home loan balance transfer?
You should consider it when another bank offers an interest rate at least 0.5% lower than your current rate, and the remaining tenure and principal are substantial enough that the interest saved outweighs the transfer costs.
What are the costs involved in a balance transfer?
Costs typically include processing fees charged by the new bank (usually 0.1% to 0.5% of the loan amount), legal/valuation charges, and stamp duty. Floating rate loans have no prepayment penalties, but fixed-rate loans might.
Will a balance transfer affect my credit score?
Applying for a balance transfer results in a hard inquiry, which may slightly dip your score temporarily. However, successfully transferring and continuing to pay EMIs on time will have a positive long-term impact.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Was this calculator helpful?
Advertisement