Compare your current personal loan EMI with a balance transfer offer and see the monthly saving, break-even month and net saving after switching costs.
Use this when another bank or NBFC offers to take over your personal loan at a lower rate. Take the outstanding principal from your current lender's foreclosure statement, not the original amount, and the remaining tenure in years. Compare the same tenure on both sides; stretching the tenure lowers the EMI but can raise total interest.
Switching costs. Add the foreclosure charge your current lender may levy plus 18% GST on it (most personal loans are fixed-rate, and RBI's ban on foreclosure charges covers floating-rate loans to individuals, so read your KFS), the new lender's processing fee plus GST, and stamp duty.
How it works. Monthly saving = current EMI − new EMI on the same balance and tenure. Break-even = costs ÷ monthly saving, rounded up. Net saving = monthly saving × months left − costs.
Worked example (illustrative). ₹6 lakh outstanding with 4 years left: at 18% the EMI is about ₹17,625; at 12.5% about ₹15,948. You save about ₹1,677 a month. Costs of ₹35,400 (a 4% foreclosure charge of ₹24,000 + GST, and a 1% new fee of ₹6,000 + GST) are recovered in 22 months, and the net saving is about ₹45,100.
Limits. The tool ignores the time value of money and any top-up added to the new loan. Ask your current lender to reprice first. See the balance transfer and top-up guide.
EMI Calculations and Checklists
How a personal loan balance transfer works in India, how to count foreclosure charges and new fees, worked break-even examples, and when a top-up loan beats a new loan.
