Balance Transfer Saving Calculator

A home-loan balance transfer is a refinance: new lender, lower rate, same principal more or less. On ₹18 lakh outstanding, 9.5% versus 8.4% for 15 years, this page’s EMIs are about ₹18,796 versus ₹17,620, and interest saved across the remaining term is about ₹2.12 lakh. Processing fees can eat a chunk of that; they are not in the formula.

The cash-flow question

Borrowers in Ghaziabad and Kochi get weekly calls from “BT teams.” IndiaKit shows the interest delta with the EMI formula on both rates so you can see whether a 1.1% cut is real money. CIBIL, legal charges and a top-up loan are separate decisions.

The maths on this page

Compute EMI at old rate and new rate on the outstanding and remaining years. Saved interest ≈ (old EMI − new EMI) × months. Defaults: ₹18,00,000, 9.5% vs 8.4%, 15 years → save about ₹2,11,695, new EMI about ₹17,620.

If the new lender resets tenure, type the tenure they offered, not the old leftover years, if those differ.

RBI has fair-practice provisions on foreclosure and floating-rate home loans; read those and the new sanction letter. Indicative only.

₹18 lakh outstanding, 9.5% to 8.4%, Ghaziabad

The Khannas in Ghaziabad still owe ₹18 lakh at 9.5% with 15 years left. A BT offer at 8.4% shows EMI falling from about ₹18,796 to ₹17,620 and about ₹2.12 lakh less interest in this cartoon. They subtract a 1% processing fee on 18 lakh before they celebrate.

What a bank still has to confirm

No fees, no overlap-interest in the switch month, no prepayment-charge (many floating home loans have restrictions that changed over time — confirm current RBI/lender rules). Not a sanction.

Common questions

Should I include processing fee in the ₹2.12 lakh?

Subtract fees yourself. If legal + processing is ₹25,000, the net save is lower and the break-even is more months of the ₹1,176 EMI cut.

Does a BT hurt CIBIL?

A new loan enquiry and a closed old loan both appear. That is a bureau story, not this calculator.

Can I BT a personal loan the same way?

The math is the same identity. Personal-loan foreclosure charges are often harsher. Read that agreement.