Balance Transfer Calculator
What a lower rate saves, net of the fees that come with switching lender.
- Saved on EMIs
- ₹4,28,293.80
- Less the cost of switching
- −₹38,600.00
- Net saving
- ₹3,89,693.80
- Same saving, discounted to today
- ₹2,26,123.54
Both loans are compared over the same remaining tenure, which is the only like-for-like comparison — a transfer that quietly stretches the tenure lowers the EMI while costing more in total. The processing fee carries 18% GST, as financial services do. The other charges cover legal and valuation work, the CERSAI filing, and the memorandum of deposit of title deeds, whose stamp duty is state-specific and typically 0.1% to 0.5% of the loan. Simple payback is shown alongside the discounted figure because the fee is paid today and the savings arrive over years. The judgment above calls a transfer worthwhile when it recovers its cost within a third of the remaining tenure — recovering it only in the final months is a bet on not prepaying or moving again. On foreclosing the old loan: since the RBI's 2025 directions, a floating-rate loan to an individual for a non-business purpose carries no prepayment charge, for loans sanctioned or renewed from 1 January 2026, whatever the amount and whatever the source of the funds. A fixed-rate loan may still be charged, so check the sanction letter before assuming zero.
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Independent · No commissions · No fund-house data — how the numbers are computed
How it works
Moving a home loan to a lender offering a lower rate saves interest, but not for free: there is a processing fee with GST on top, legal and valuation charges, a CERSAI filing, and stamp duty on the fresh memorandum of deposit of title deeds. Whether the switch is worth making is a question of how quickly the lower EMI repays those costs.
Both loans have to be compared over the same remaining tenure. A transfer that quietly stretches the tenure will show a lower EMI while costing more in total interest, and that is the most common way these offers flatter themselves.
The calculator shows simple payback alongside the discounted figure, because the fee is paid today while the savings arrive over years. It calls a transfer worthwhile when the cost is recovered within a third of the remaining tenure — recovering it only in the final months is a bet on never prepaying or moving again.
Monthly saving = EMI at the old rate - EMI at the new rate, both over the remaining tenure. Months to recover = total switching cost / monthly saving. Total cost = processing fee x 1.18 for GST, plus legal, valuation, CERSAI and MODT charges.The discounted view sums the same monthly savings at a discount rate before subtracting the cost, which is the honest comparison when a cost today buys a stream of savings spread over a decade or more.
Frequently asked questions
How much rate difference makes a balance transfer worthwhile?
There is no fixed threshold — it depends on the outstanding balance and the tenure left, because the saving scales with both while the cost scales only with the balance. As a rough guide, a difference of half a percentage point or more is usually worth examining on a large balance with more than ten years left, and rarely worth it on a small balance in its final years. Run your own numbers rather than trusting the rule of thumb.
Will my existing lender charge me to foreclose?
For a floating-rate home loan taken by an individual for a non-business purpose, no — the RBI's 2025 directions removed foreclosure and prepayment charges entirely for that case, for loans sanctioned or renewed on or after 1 January 2026, with no lock-in. A fixed-rate loan may still carry a charge. It is also worth asking your current lender to match the offer before moving: matching costs them nothing and often works.
What is MODT and why does it cost so much?
The Memorandum of Deposit of Title Deeds is the document registering that your property secures the loan, and it attracts state stamp duty, typically 0.1% to 0.5% of the loan amount. On a ₹50 lakh transfer that can be ₹5,000 to ₹25,000 depending on the state. Because a transfer means creating a fresh charge in favour of the new lender, this cost recurs with every switch and is often left out of the advertised comparison.