Get an exact current-loan payoff
Request the outstanding principal, remaining instalments and dated foreclosure or closure quote from your current lender.
FinSmarter personal loan guide Ā· Overview
Personal loan balance transfer: compare savings after all charges
A lower EMI can come from extending the repayment period and may not mean a lower total cost. Compare what remains on your current loan with the complete transfer offer.
Compare with care: published rates and eligibility are indicative. The lender decides the final offer. Review the written terms and total cost before you accept.
A PRACTICAL COMPARISON PLAN
Calculate the transfer break-even from today
Compare the cash flows that remain on the existing loan with every payment and charge on the proposed transfer. A smaller instalment alone does not establish a saving.
Add the new loanās one-time costs
Include processing charges, taxes and any required add-ons. Compare the transferās total future outflow with the current loanās remaining outflow.
Check how the term changes
Compare the new tenure and early-payment terms. If savings depend on keeping a balance longer, include that additional time and cost in your decision.
What to check before you decide
Use this checklist to compare the same borrowing plan across lenders and avoid focusing on a single headline figure.
- Request the current outstanding balance and any foreclosure or closure charges.
- Add the new processing fee, taxes and other charges to the transfer estimate.
- Compare total future payments over the new tenure, not just the monthly EMI.
- Check whether the new lender requires additional products or conditions.
Frequently asked questions
Answers below explain what to verify; the lenderās current written terms decide the actual product and offer.
Will a balance transfer always reduce my loan cost?
No. Fees, the remaining tenure and a longer new term can offset a lower rate. Compare the total amount you would pay from today under both options.
How can I tell whether a balance transfer saves money?
Compare the total amount still payable on the current loan with the transferās total payments plus closure charges, processing fees and taxes from today.
Can a lower EMI make the transfer more expensive?
Yes. A longer new tenure can lower each instalment but increase total outflow. Compare the same payoff date and total cost, not only the EMI.
What figures should I request from my current lender?
Ask for the current outstanding balance, remaining schedule, foreclosure or closure charges and the date through which the quote is valid.
CHECK THE PRIMARY SOURCE
Read the current written disclosure
Use this reference for general context, then confirm your lenderās own Key Facts Statement, charges and repayment schedule. Product terms can vary.
RBI: current bank and NBFC lending directions