Balance transfer planning
Personal Loan Balance Transfer Calculator.
A lower rate from a new lender doesn't automatically mean savings — processing and foreclosure fees can eat into or even erase the benefit. See the real net number before you switch.
Balance transfer
Is switching lenders worth it?
Side-by-side comparison
Current loan — remaining interest
New loan — total interest
New EMI
The fees that make or break a transfer
Two costs work against you: the new lender's processing fee (typically 0.5-3% of the transferred amount) and your current lender's foreclosure fee (often 2-5% for fixed-rate personal loans, though RBI's no-penalty rule may apply if yours is floating-rate). A meaningful rate cut can still be worth it after both fees — but only the math tells you for sure, which is exactly what this calculator does.
Frequently asked questions
What is a personal loan balance transfer?
A balance transfer means moving your outstanding personal loan from your current lender to a new lender offering a lower interest rate, so the remaining principal is repaid on cheaper terms. You still owe the same outstanding amount — just to a different lender, at a different rate.
What fees should I account for before transferring?
Two costs typically apply: a processing fee on the new loan (usually 0.5-3% of the amount transferred) and a foreclosure or prepayment fee your current lender may charge on the outstanding balance (often 2-5% for fixed-rate personal loans). Both eat into your savings — always net them out before deciding, which is exactly what this calculator does.
How much rate difference makes a balance transfer worth it?
There's no fixed threshold — it depends on your outstanding amount, remaining tenure, and the transfer fees involved. A larger outstanding balance and longer remaining tenure make even a small rate difference (1-2%) worthwhile, while a small balance with only a few months left may not justify transferring even at a much lower rate, once fees are factored in.
Does a balance transfer affect my credit score?
Applying for a new loan involves a fresh credit check (a "hard inquiry"), which can cause a small, temporary dip in your score. Closing your old loan is generally reported positively, and successfully managing the new loan on time rebuilds your score — the net effect over time is usually neutral to positive if the transfer genuinely lowers your cost.