How this calculator works
A balance transfer moves your loan to a lender with a lower rate. It saves interest, but costs a processing fee, legal and valuation charges and your time. This shows the net saving and how many months it takes to recover the costs.
It also shows the option of keeping your current EMI at the lower rate, which closes the loan early.
Formula
Worked example
Moving ₹35 lakh with 15 years left from 9.4% to 8.5% cuts the EMI by about ₹1,871, saving ₹3.4 lakh of interest. After ₹25,000 of costs the net saving is about ₹3.1 lakh, and costs are recovered in 13 months.
Things to watch
- Ask your current lender to reprice first. Many will match the rate for a small fee.
- A gap under 0.5% rarely pays for itself unless the loan is large and long.
- Read the new lender’s rate reset terms; a low teaser rate can rise.
Questions
When is a balance transfer worth it?
When the net saving is clearly positive and you recover costs well within the remaining tenure.
Should I keep the same EMI after switching?
Keeping the old EMI at the new rate closes the loan sooner and saves more interest.
Does a balance transfer affect my credit score?
There is a hard enquiry and a new account, which may dip the score briefly.
Can I transfer a business loan?
Yes, many lenders take over business loans and working capital limits; compare total costs the same way.
For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.