Balance Transfer Savings Calculator

Loan Outstanding Remaining
Tenure of Loan remaining
Yrs
Prepayment Penalty
%
Interest Rate
%
New Int Rate
%

By Transfering Your Loan, You Can Make Savings Of

EXPERTS OFFERS

Introduction

Each individual over the age of 35 in India has, on an average in his life time, taken 2.4 Home Loans, & transferred his Home Loan from one Bank to the another on lower interest about 1.7 times.

Planning to buy a new car? Check your Car Loan Eligibility withing minutes.

While these numbers have been totally cooked up to make this look real & for you to take notice – I am sure you would have now understood what Balance Transfer or Home Loan Balance Transfer means. It means to transfer your Home Loan from one lender (Bank or a NBFC) to another one. Of course, you would do it only if it offers a better interest rate to you.

The need for this calculator

Maths related to Financial Calculations is not Class 8 Maths. How much you still owe to the Bank? What is your current Interest Rate? What is the duration of your loan remaining? What is the new interest rate you are getting? How much is the pre-payment penalty you are going to be charged by the existing Bank? Using all these inputs to find out your savings if you switch or home loan balance transfer is not an easy task. So we have brought to you very easy to use calculator. Yes, similar calculator are there on other sites as well & they show the same result – you know why? Because the Maths won’t change.

We give you the Savings you can do in Rupees by transferring. So then you can decide whether you wish to change over or not. And then if you would look to the right slightly, you can find offers on Balance Transfer or Home Loan Transfer. Choose from one of them, get door-step service & save money. Then go on a holiday or get a car or do whatever you want to do with that money.

Money calculations might be tough but use of money should be simple. Right?

How to use this calculator

Yes we know you know the terms used in this calculator, this article & can easily use this calculator. But to lesser mortals, we have to explain the same.

Loan Outstanding Remaining: You have put the principal amount you still have to pay on your current loan running with the Bank. Just as an example we have populated this field with Rs.50 lacs.

Tenure of Loan Remaining: Suppose you took a 20 year loan from the Bank and have been paying EMIs for the last 2 years – the tenure of your existing loan remaining is 18 years. We have put 20 as default in the calculator – you can change it.

Current Interest Rate: Please enter here your interest rate on the current loan going on. We have taken 10.5% as default value here.

New Interest Rate: Enter here the current offers in the market for better interest rates. You can check offers on our site to enter the new interest rate. Default value we have put here is 9.5%.

Prepayment Penalty: Often in some remote corner of your sanction letter of the existing loan you would find a mention of prepayment penalty where the existing Bank will penalise you for moving out. For individuals, the same has been scrapped by the RBI notification but wherever the guarantor or applicant or co-applicant is non-individual (company or firm), Banks tend to charge the same.

Home Loan Transfer explained in detail

Read at your own Risk, this stuff is going to get technical now. Don’t tell me I didn’t warn you.

Benefits

Goes without saying – the most important benefit is Rupee Savings on account of interest rate reduction as low as 9.30% which could lead to a reduction of monthly EMI anywhere between 2% to 6% or even more.

You have been paying EMIs for some time. EMIs contain portion of principal amount as well. Which means that you may have some eligibility available which you can use to take a top up loan which is at a slightly higher interest rate than the interest rate at which your Home Loan is getting taken over.

See our offers on Home Loan Transfer to avail the best deals.

Process for transferring

Once you have decided that you are saving enough to get the loan transferred, & shortlisted a Bank to do it, you are moving to the next step of completing the transaction. Of course I am assuming you would have taken our help doing the same. Go to your existing Bank & request them for 2 things – Foreclosure Letter & List of Documents. Foreclosure Letter is something which states how much you have still due to the Bank as on a particular date. List of Documents is the list which gives the list of all the property related documents you have given to them. Both are required by the new Bank to disburse you the money. And trust me, it’s a Herculean task getting these things out from your existing Banker. They will resort to all sort of tactics to not let you do this.

Apply for a new loan using the copy of property documents with a new Bank you have chosen. Get a sanction. The new Bank will make a cheque in name of the existing Bank for the outstanding amount. In some days (15-30 days), the earlier Bank will give property papers to the new Bank. In case there is a top up loan involved – the new Bank will be in a position now to disburse it directly to you.

Watch out for

  • Is the deal for real? Check the credibility of the new lender you are moving to & whether his claim for a lower interest rate is for long term & not a short term play by it.
  • Now this one is tricky – the SPREAD over the benchmark rate! This spread can also be played upon the lenders to attract new business. Watch out that you should not end up paying a higher interest rate in few months time.
  • If the registry of the property (flat by builder) has not been done till now you will have to give yourself proper time buffer to get documents from builder. Also, the timing would have to be proper as this transfer would take some time & you should not be caught by a raised demand by the builder in between. Also check if all the components of the cost of the flat, if not more, are covered by your new lender as well.

Cost of transferring

Foreclosure or Pre-payment Penalty that your existing Banker may charge for you moving out, Processing Fees of your new Bank (generally they lay a red carpet for the customer coming from competition so play it well), Stamp Duty (if applicable) & some very random charges.

Document List

Documents

Salaried

Self Employed Professional

Self Employed Non Professional

Application form with photograph duly signed

Y

Y

Y

Identity, residence and age proof

Y

Y

Y

Last 6 months bank statements

Y

Y

Y

Last 3 months Salary-slips

Y

Y

Y

Processing fee cheque

Y

Y

Y

Form 16 / Income Tax Returns

Y

Y

Y

Proof of business existence

 

 

Y

Business profile

 

 

Y

Education qualification certificate and proof of business existence

 

Y

Y

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

 

Y

Y

ILast 3 years Income Tax Returns with computation of Income

 

Y

Y


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