Loan Balance Transfer Calculator

A balance transfer moves your existing home loan from one lender to another — usually to take advantage of a lower interest rate. The new lender pays off your existing loan and disburses a fresh loan to you. Most PSU banks and large HFCs offer this facility.

Breakeven months = Total transfer cost (foreclosure + processing + legal) / Monthly interest saving. If breakeven is 12 months, you should stay with the existing loan for at least 12 months after transfer for net savings. Calculator applies this for every offer pair.

No — the loan stays a home loan, so Section 80C principal and Section 24(b) interest deductions continue without break. Only the lender changes; loan tenor may be reset with the new lender, which affects future deductions. Calculator assumes the same tenure for break-even analysis.

For floating-rate home loans taken by individuals, RBI has banned foreclosure charges. Fixed-rate home loans and NBFC loans typically levy 2-4% of outstanding as foreclosure penalty. Calculator handles both cases and surfaces whether foreclosure cost eats into savings.

A top-up allows additional borrowing on the same property during balance transfer. Lenders offer up to 70-80% of property value minus existing outstanding. Top-up is treated as a personal loan by some lenders (so 10-14% rate) or as a home loan by others (8.5-9.5%).

A transfer makes sense when (1) the rate drop is ≥0.5%, (2) breakeven is ≤24 months, (3) the new lender has better customer service, digital portal and prepayment rules. Cost-saving alone may not justify transfer if breakeven is too long.