When a Balance Transfer May Be Worth Reviewing
A transfer may be considered when a lower effective borrowing cost, an appropriate tenure, improved service terms or a revised loan structure could benefit the borrower. The result depends on the unpaid principal, remaining period, new fees, rate type and any permitted exit-related costs.
Calculate Net Savings Properly
Compare the total amount you would repay if you remain with the current lender against the total amount payable under the proposed lender, including transfer-related costs. A lower EMI caused mainly by extending tenure can increase the total interest paid, even if monthly cash flow improves.
Common Transfer Categories
Home Loan Balance Transfer; Personal Loan Balance Transfer where available; Loan Against Property Balance Transfer; and eligible business facility refinancing as permitted by the destination lender.
What You May Need
Existing sanction letter, outstanding statement, repayment track record, current loan terms, income records, KYC records, property documents for secured products and other documents required by the new lender.
Frequently Asked Questions
Will transferring a loan always reduce my EMI?
No. EMI depends on rate, principal and tenure; transfer costs also matter.
Can I transfer more than once?
That depends on lender policies and the terms of the existing facility.
Who closes the old loan?
The closure and takeover process is governed by the participating lenders' documentation and disbursement instructions.