In this growing economy, every sector has its competition. One company is trying to edge out the services offered by another company. Consumers today are spoilt for choices. If you are unhappy with the repayment terms, interest rates, and services or wish to switch to a better lender, you may do so conveniently.
The process of switching lenders is called Home Loan balance transfer. While it may be overwhelming, you can save yourself from applying for a costlier Loan using the Home Loan balance transfer calculator. You usually use it when there are major changes in the interest rates. You can enjoy lower EMIs and save up for other goals.
Data you need to enter
You need to furnish some data to understand how much you save on your EMIs and overall Loan. The Home Loan transfer calculator requires a few details for calculating your new EMI and your total savings:
- Outstanding principal amount
The principal amount you borrowed as a Loan needs to be mentioned. It calculates the new EMI and other terms.
- EMI payments
The current equated monthly instalments you pay your existing lender need to be mentioned.
- Pending term
The remaining term for which you need to pay instalments must be mentioned out of the total agreed term.
- Interest factor
The interest rate charged by the new lender should be mentioned.
- Term requirements
You can reset the terms when applying for a Home Loan balance transfer. This means you can change the repayment tenure for the Loan. Once you feed this data into the Home Loan balance transfer calculator, you get the new EMI and be charged with your total savings.
Eligibility for Home Loan Balance Transfer
As a Home Loan is a long-term liability, the eligibility depends on the person’s age, income, and other factors. Submit the requested documents after ensuring that you foreclose your old Loan. A foreclosure attracts charges from most lenders. When you transfer a Home Loan to another lender, you pay 10% interest per annum if you are a salaried employee and 11% interest if you are a self-employed individual.
You can use this calculator when interest rates have changed, when you have a large outstanding balance, and when you are in the early stages of your Loan repayment. Depending on your eligibility, the maximum amount is the balance on your outstanding Loan or a top-up on your existing Loan. The processing fee is up to 3%, and the interest conversion fee is 1% of the Loan amount.
Conclusion
This calculator lets you estimate your potential savings and the amount you can borrow. It gives a realistic picture of your expected repayment tenure while saving you time and effort spent conducting multiple queries to understand the EMI amounts and the balance Loan cost.
