What is Balance Transfer?
Balance transfer allows you to move your existing loan to another bank offering a lower interest rate. This can reduce your EMI and total interest paid. However, consider processing fees, documentation, and the remaining tenure before deciding.
Formula
Balance Transfer Analysis:
Current Total Payment = Current EMI × Remaining Months New Total Payment = New EMI × Remaining Months + Processing Fee Total Savings = Current Total - New Total Transfer is beneficial if: Total Savings > 0 Consider: Documentation effort, relationship with current bank, and any foreclosure charges.
How to use this calculator
Enter your outstanding loan amount, current interest rate, remaining tenure, the new rate offered, and any processing fee. The calculator shows if the transfer is worthwhile.