Loan Balance Transfer Calculator
Is switching lenders for a lower rate actually worth it, once transfer costs are netted out?
For most floating-rate individual loans sanctioned or renewed after 1 January 2026, RBI rules ban foreclosure charges entirely — set this to 0% unless your loan is an exception.
Stay with current lender vs transfer
| Metric | Stay Put | Transfer to New Lender |
|---|---|---|
| Monthly EMI | ₹22,419 | ₹19,989 |
| Total Interest Remaining | ₹20,35,413 | ₹15,98,015 |
| One-Time Costs | ₹0 | ₹5,000 |
| Total Cost From Today | ₹20,35,413 | ₹16,03,015 |
The rate difference alone doesn’t tell you the answer
A lower rate from a new lender always looks attractive, but balance transfers come with real costs: processing fees, sometimes a foreclosure charge from your current lender, and paperwork (new property valuation, legal checks for secured loans). This calculator nets the genuine interest savings against those one-time costs, so “total cost from today” is the number that should actually drive the decision — not the headline rate difference.
Common mistake
Comparing only the EMI, which drops with any rate cut regardless of whether the transfer is worth it overall. Always check the “total cost from today” row above, which accounts for the transfer costs — a small rate cut on a short remaining tenure can easily lose to transfer costs.