Balance Transfer Calculator
Should you switch your loan? Compare interest rates and calculate true net savings.
A Home Loan Balance Transfer (or Refinancing) allows you to move your outstanding loan from one bank to another to avail of a lower interest rate. However, a lower rate does not always mean savings because of processing fees and hidden charges. Use this calculator to find your Net Benefit and decide if the switch is truly profitable.
Current Loan Details
New Bank Offer
Total Net Savings
-₹0
Old EMI
₹0
New EMI
₹0
Analysis
Switching to 8.5% for 15 years changes your monthly obligation by ₹0.
Always compare Net Benefit (Total Interest Saved - Fees). Just looking at lower EMI can be misleading if you increase the tenure significantly.
When Should You Switch? (The Golden Rules)
Do not switch just because you got a cold call offering a lower rate. Switch only if:
- ✅The interest rate difference is at least 0.50% (e.g., 9.5% to 9.0%).
- ✅Your remaining tenure is more than 5 years. (Switching in the last few years saves very little).
- ✅The savings cover the Processing Fees within the first 12 months.
Hidden Costs of Balance Transfer
| Charge Name | Estimated Cost | Impact |
|---|---|---|
| Processing Fee | 0.5% - 1% of Loan Amount | Major Cost |
| MODT / Legal Charges | ₹5,000 - ₹15,000 | Often Overlooked |
| Foreclosure Charges | ZERO (For Floating Rate) | Only applicable for Fixed Rate loans |
Frequently Asked Questions
When should I consider a balance transfer?▼
A balance transfer may help reduce interest costs if the new rate is meaningfully lower and fees are reasonable.
Does balance transfer affect CIBIL score?▼
It may cause a small temporary impact due to a new inquiry, but timely repayments improve credit health.