Personal Loan Balance Transfer Calculator

Check whether moving your personal loan to a cheaper lender actually saves money once fees are counted.

You save
₹20,663
net of ₹8,000 in transfer costs
Worth transferring. You recover the ₹8,000 switching cost in 11 months, then save ₹796 every month.
Current EMI₹14,063
New EMI₹13,267
Monthly saving₹796
Interest saved₹28,663
Transfer cost₹8,000
Break-even11 months

About the Personal Loan Balance Transfer Calculator

Personal loan rates vary enormously between lenders for the same borrower, and a credit score that has improved since you first borrowed can unlock a much better rate. Transferring is straightforward: the new lender pays off the old loan and you service them instead.

Watch two costs. The new lender charges a processing fee of 1–3%, and because most personal loans are fixed rate, your existing lender may levy a foreclosure charge of 2–5% — that one belongs in the transfer cost box above.

The formula

Net saving = (Total payable at old rate − Total payable at new rate) − Transfer cost
Break-evenTransfer cost ÷ monthly EMI saving — the months to recover the switch

A transfer only pays if you keep the loan beyond the break-even point.

Things worth knowing

1
Personal loans are usually fixed-rate, so foreclosure charges of 2–5% may apply on exit. Include them above.
2
With less than 18 months to run, a transfer rarely pays — most of the interest has already been charged.
3
A score that has improved since you borrowed is the strongest argument for a rate cut, with your existing lender or a new one.

Frequently asked questions

Yes. The new lender pays off your outstanding balance directly and you repay them at the lower rate. You need a foreclosure letter from the existing lender showing the exact payoff amount.

Most lenders require 6–12 EMIs to have been paid before they will allow foreclosure, and the new lender will want to see that clean repayment record anyway.

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