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Loan Balance Transfer Calculator
Whether moving your loan to a cheaper lender pays for itself, and how long that takes.
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Result
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A lower rate is only worth having after it has repaid the cost of switching. That break-even point is the whole decision.
The real cost of moving
Processing fee, legal and valuation charges, stamp duty on the new mortgage in some states, and the time it takes. Budget ₹20,000 to ₹35,000 on a typical home loan.
Ask your current lender first
Most banks will match or come close to a competing offer for a small conversion fee, and that involves none of the paperwork. The transfer quote is useful leverage even when you do not intend to move.
When it stops making sense
Late in the tenure, most of your remaining payments are principal, so a rate cut has little left to act on. If you expect to close the loan within the break-even period, the transfer loses money.
Frequently asked questions
When is a balance transfer worth it?
When the interest saved over the remaining term clearly exceeds the switching cost, and you will keep the loan past the break-even point. A gap of at least 0.5 percentage points with substantial tenure left is the usual rule of thumb.
What does a transfer actually cost?
Processing fee, legal and valuation charges, and in some states stamp duty on the new mortgage. Budget ₹20,000 to ₹35,000 on a typical home loan, plus the time taken to assemble documents again.
Can I just ask my current bank for a lower rate?
Usually yes. Most lenders will match or come close for a small conversion fee and none of the paperwork. A written transfer offer from another bank is effective leverage even if you never intend to move.
Does a transfer affect my credit score?
Marginally and briefly. The new enquiry and the closure of an old account cause a small dip that recovers within months of regular payments on the new loan.