Balance Transfer Calculator
Calculate your savings when transferring a loan to a lower interest rate. Factor in processing fees and compare EMI, total interest, and net savings to decide if a balance transfer is worth it.
Current EMI
₹26,865
New EMI
₹24,618
EMI Savings
₹2,247
Interest Saved
₹4,04,395
Processing Fee
₹12,500
Net Savings
₹3,91,895
Loading chart...
What is Balance Transfer?
A balance transfer (also known as a loan transfer) is the process of transferring your existing loan from one lender to another, typically to take advantage of a lower interest rate. This can result in significant savings on your total interest outgo and reduce your monthly EMI burden.
Benefits of Balance Transfer
- Lower interest rate reduces your monthly EMI
- Substantial savings on total interest paid over the loan tenure
- Option to top-up your loan amount at the new lower rate
- Better customer service or features from the new lender
When Does It Make Sense?
A balance transfer makes sense when the interest savings outweigh the processing fees and other charges involved. Generally, a rate difference of at least 0.5% with a significant remaining tenure can justify the transfer. Always compare the net savings after deducting the processing fee to make an informed decision.