3,00,000
14%
10.5%
24 Months
2%
1%
Old Combined EMI14,404
New Monthly EMI13,913
Net Refinance Savings1,165
Refinancing Savings Analysis:
- Remaining interest under current loan: ₹45,693.
- Remaining interest under new loan: ₹33,907.
- Foreclosure charges (old bank + GST): ₹7,080.
- Processing fee (new bank + GST): ₹3,540.
- Total refinance transaction cost: ₹10,620.
- Net absolute savings after switching lenders: ₹1,165.
Advertisement
Frequently Asked Questions
What is personal loan refinancing?
Refinancing involves transferring your existing personal loan outstanding balance to a new bank that offers a lower interest rate, reducing your monthly payouts.
What are the costs of refinancing?
You must pay a foreclosure penalty (2-4% + GST) to your current lender and a new processing fee (1-2% + GST) to the new lender.
When is refinancing a loan worth it?
Refinancing is worth it if the interest rate difference is at least 2% and you have a significant remaining tenure (usually more than 18-24 months).
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Free templates included Unsubscribe in 1-click
Was this calculator helpful?
Advertisement