Most balance transfer calculators show you the gross interest saving, which makes every transfer look worthwhile. This one subtracts what switching costs and tells you the month you break even.
₹5,92,187
net benefit after switching cost
- Your EMI now
- ₹40,919
- EMI after moving
- ₹38,029
- Saved each month
- ₹2,890
- Interest saved
- ₹6,24,187
- Less switching cost
- ₹32,000
- Break-even
- 12 months
Worth doing if you plan to keep this loan for more than 12 more months.
See if this is worth movingIndicative only. Final eligibility, interest rate, charges and sanction are decided by the lender after full assessment of your profile and documents. Transakt does not lend and does not approve loans.
What switching actually costs
Enter a realistic figure rather than zero. A transfer typically involves:
- Processing fee at the new lender — usually 0.5% to 1% of the loan.
- Legal and valuation charges on a property-backed loan — often ₹8,000 to ₹20,000 combined.
- Foreclosure charges at the old lender — generally nil on a floating-rate loan to an individual, but check.
- Mortgage stamp duty and registration on the new charge, which on a large loan can be the biggest item of all.
- Your time. A property loan transfer is a three to five week process.
A worked example
₹42,00,000 outstanding at 9.6%, with eighteen years still to run. Your current EMI is about ₹40,919 a month.
Move to 8.5% and the EMI drops to about ₹38,029 — a saving of ₹2,890 every month. Over the remaining eighteen years that is roughly ₹6,24,000 of interest saved.
Subtract ₹32,000 of switching cost and the net benefit is about ₹5,92,000. You break even in month 12 — so if you intend to keep the loan for more than a year, it is worth doing.
The rough test
If you save half a percentage point or more and have more than five years remaining, a transfer is usually worth the trouble. Less than that deserves the actual arithmetic, which is exactly what this tool does.
One thing worth trying first: tell your existing lender you are looking at moving. Many will reduce your rate to retain you, sometimes for a small conversion fee, and it takes a phone call rather than five weeks.
Can I transfer any loan?
Home loans and loans against property transfer routinely. Business loans and personal loans are harder — a new lender is effectively underwriting you afresh, so it is a new application rather than a transfer.
Will a balance transfer hurt my credit score?
There is a small, temporary effect from the enquiry and from closing an old account. A cheaper loan repaid on time is better for your credit profile than an expensive one within a few months.
Should I take a top-up at the same time?
It is often the right moment, because the new lender is already doing the valuation and legal work. Just do not let the availability of extra money turn a cost-saving exercise into more borrowing than you intended.