Save Lakhs

by Venba Apps

Balance Transfer Calculator

Evaluate if switching to a new lender saves you money

Current Loan Details

₹50.00L
₹5L₹1Cr
8.00%
7%14%
20 years
1 year30 years

New Lender Offer

8.50%
6.5%12%
Rate Difference: -0.50% higher
₹15,000
₹0₹50K
₹10,000
₹0₹30K
Total Switching Cost
₹25,000

Not Recommended

Switching costs outweigh potential savings

Net Savings (After Costs)
-₹4,01,598
Over 20 years

EMI Comparison

Current Monthly EMI₹41,822
New Monthly EMI₹43,391
Monthly Savings-₹1,570

Total Interest Comparison

Current Total Interest₹50,37,280
New Total Interest₹54,13,878
Interest Savings-₹3,76,598
Switching Costs- ₹25,000
Net Benefit-₹4,01,598

Recommendations

  • •Balance transfer may not be worth it. Switching costs are too high relative to savings.
  • •Interest rate difference is only -0.50%. Consider negotiating with your current bank for a rate reduction instead.

Balance Transfer Insights

Break-Even Analysis

Switching costs exceed potential savings

  • Monthly EMI savings: -₹1,570
  • Total interest savings: -₹3,76,598
  • Switching costs: ₹25,000
  • Net benefit: -₹4,01,598

Consider negotiating with your current bank instead of transferring.

Compare rates from 15+ banks

Find the best home loan rates from major banks and see how much you can save

Understanding Balance Transfer

What is Balance Transfer?

Balance transfer (also called loan refinance) is when you move your existing home loan to a different lender offering better terms - typically a lower interest rate. This can save you lakhs over the loan tenure.

When Does It Make Sense?

  • Interest rate difference of 0.5% or more
  • Substantial remaining tenure (5+ years)
  • Low switching costs relative to savings
  • Break-even period less than 2 years

Typical Switching Costs

  • Processing fee: 0.25-0.50% of loan amount
  • Legal & technical charges: ₹5,000-15,000
  • Stamp duty (varies by state): ₹500-5,000
  • Prepayment penalty (if any): Check with current bank

Things to Verify

  • No hidden charges in new loan agreement
  • Same or better loan tenure offered
  • Property will need fresh valuation
  • CIBIL score check and documentation required