Paying More Than 8.75%? Switch Lenders and Save Lakhs
Moving your home loan to a lower-rate lender can cut years off your tenure and save you lakhs in interest — calculate your exact savings below.
Calculate How Much You Save by Switching
Enter your current loan details to see your exact savings.
New EMI
₹49,237/mo
↓ ₹2,974/mo lower
Total Interest Saved
₹5.35 L
over 15 years
Real Example
On a ₹50.00 L loan at 9.5%, switching to 8.5% saves ₹5.35 L over 15 years.
Old EMI
₹52,211/mo
New EMI
₹49,237/mo
When Should You Transfer?
Step by Step Process
1. Apply with New Lender
Submit your application and documents to the lender offering the lower rate.
2. New Lender Pays Old Lender
The new lender directly settles your outstanding balance with your current bank.
3. You Pay Lower EMI
From next month, your EMI is calculated at the new, lower interest rate.
Frequently Asked Questions
Is there a charge for balance transfer?
Yes — expect a processing fee from the new lender (typically 0.5% to 1% of the loan amount, sometimes waived during promotions), plus legal and technical valuation charges, and a Memorandum of Deposit (MOD) charge for re-registering the property mortgage. Most banks no longer charge a foreclosure fee on floating-rate home loans as per RBI rules, so your old lender usually can't charge you for closing the loan early. Always ask for a full cost breakdown before switching.
How long does the balance transfer process take?
A typical home loan balance transfer takes 2 to 4 weeks from application to the new lender paying off your old loan, depending on how quickly you submit documents and how fast the property's legal and technical verification is completed. Some digital-first lenders can complete it faster, in around 10-15 days.
What documents are needed for balance transfer?
You'll need: your existing loan statement and foreclosure letter from the current lender, property title documents, identity and address proof, income proof (salary slips or ITR), last 6 months' bank statements showing EMI payments, and your latest CIBIL report. The new lender will also conduct its own property valuation.
Will balance transfer affect my CIBIL score?
A balance transfer itself doesn't hurt your CIBIL score — in fact, a consistent repayment history on the new loan helps it over time. There may be a small, temporary dip from the new lender's hard credit inquiry, but this typically recovers within a few months as long as you keep paying on time. Missing payments during the transition period is the only real risk to your score.
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