Loan Balance Transfer Calculator
Calculate savings and break-even period for transferring your loan to a new lender. Compare multiple scenarios and make informed decisions.
Current Loan Details
New Lender Offer Details
Top-Up Loan (Optional)
Transfer Not Recommended
Break-even period is too long
Confidence: LowQuick Comparison
Current Lender
₹56,38,813
Total Payment
New Lender
₹54,07,594
Total Payment
| Scenario | Monthly EMI | Tenure | Total Interest | Total Cost | Net Savings |
|---|---|---|---|---|---|
| No Transfer | ₹31,000 | 180 months | ₹26,38,813 | ₹56,38,813 | - |
| Transfer (Same Tenure) | ₹29,542 | 180 months | ₹23,17,594 | ₹54,07,594 | ₹2,31,220 |
| Transfer (Extended) | ₹27,849 | 204 months | ₹26,81,148 | ₹57,71,148 | - |
Negotiate First
Try negotiating with your current lender before transferring. They may match or beat the new offer.
Compare Multiple Offers
Get quotes from at least 3-4 banks to ensure you're getting the best possible rate and terms.
Consider Lock-in
Check the new loan's lock-in period and prepayment terms for future flexibility.
Calculate True Savings
Include all hidden costs like stamp duty, technical valuation, and insurance transfer fees.
Interest Rate Difference
Minimum 0.75-1% recommended
A 0.5% difference in interest rates can save ₹1,61,774 over your loan tenure.
Remaining Tenure
Longer tenure = More savings
Shorter the remaining tenure, higher the interest rate reduction needed to justify transfer costs.
Transfer Costs
Should be recovered in 12-18 months
Total transfer costs of ₹90,000 should ideally be recovered within the first 1.5 years through EMI savings.
Example 1: Home Loan Transfer (Highly Recommended)
Meet Priya, 28-year-old software engineer earning ₹12 lakhs annually. She wants to know if transferring her home loan makes financial sense.
Example 2: Car Loan Transfer (Not Recommended)
Meet Rahul, 32-year-old businessman who took a car loan 3 years ago and wants to transfer for a lower rate.
Example 3: Business Loan Transfer with Top-Up (Recommended)
Meet Anjali, 35-year-old entrepreneur who needs working capital and wants to transfer her existing business loan.
Transfer Makes Sense
Rate Difference > 1%
Higher the rate difference, more the savings
Remaining Tenure > 5 Years
Long tenure maximizes interest savings
Break-even < 18 Months
Quick recovery of transfer costs
Low Transfer Costs
Processing fee < 1% of loan amount
Don't Transfer
Rate Difference < 0.5%
Minimal savings, not worth the hassle
Remaining Tenure < 2 Years
Short tenure limits savings potential
High Prepayment Penalty
Penalty > 2% significantly reduces net savings
Break-even > 3 Years
Too long to recover transfer costs