Would switching lenders actually save you money?
Compare your current rate against a new offer, net of switching costs, and see how long it takes before the move pays for itself.
Net saving over the tenure
₹6.42 L
Break-even in 7 months
- Current EMI
- ₹38,689
- New EMI
- ₹34,981
- Monthly saving
- ₹3,708
- Interest saved
- ₹6.67 L
- Less switching costs
- − ₹25 K
On floating-rate loans to individual borrowers, RBI prohibits foreclosure charges, so switching costs are usually limited to the new lender's processing, legal and valuation fees.
Find a lower rateGetting the balance transfer decision right
A balance transfer moves your outstanding loan to a lender offering better terms. The pitch is simple: a lower rate means a lower EMI, but the arithmetic that matters is the net saving after costs, and how much tenure you have left to earn it back.
Two things decide the answer. First, the rate gap: below roughly half a percentage point, the saving rarely justifies the paperwork. Second, the remaining tenure: interest is front-loaded, so the earlier you are in the loan, the more there is left to save.
Before you switch, tell your existing lender you have a competing offer. Many will match it, or come close, for a small conversion fee, which gets you most of the benefit with none of the legal work. If they won't, the transfer is straightforward, and we can arrange it alongside a top-up if you need additional funds.
Questions about this calculator
Broadly, when the rate gap is meaningful and you still have a long tenure left. With most of the interest concentrated in the early years, a switch in year three of a twenty-year loan can save a great deal; the same switch in year sixteen usually will not cover its own costs.
The new lender's processing fee (typically 0.25–1% of the loan), fresh legal and technical valuation charges, and stamp duty on the new mortgage where applicable. On floating-rate loans to individual borrowers, RBI prohibits the old lender from charging foreclosure fees.
The number of months of saving required to recover your switching costs. If switching costs ₹30,000 and saves ₹3,000 a month, you break even in ten months: everything after that is genuine saving, provided you keep the loan that long.
Yes, a top-up loan alongside the transfer is common, and is usually priced far below a personal loan because it is secured against the same property. It is one of the cheapest ways to raise funds if you already have a mortgage.
Almost always, yes. Existing lenders frequently match or nearly match a competing offer for a small conversion fee, which avoids the paperwork and cost of a full transfer. Get the competing sanction letter first: it is your leverage.
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