How To Do
Home Loan Refinance Calculator
RBI cut the repo rate by 125 bps in 2025. If your home loan is still on a 2023-24 rate, you may be overpaying ₹2K–₹5K every month. Find out in 30 seconds whether refinancing makes sense after fees.
Your current loan
New loan offer
When refinancing makes sense
- Rate gap of at least 0.5% usually clears fees within 12-18 months. Below 0.25% — usually not worth the paperwork.
- Tenure remaining ≥ 5 years — most savings come from early years when interest dominates EMI. With under 3 years left, interest is mostly already paid.
- Break-even < 50% of remaining tenure is the sweet spot. Beyond that, you might move banks again before recovering fees.
- RBI bans prepayment penalty on floating-rate retail loans. If your bank tries to charge one, push back — cite RBI's 5-Aug-2014 circular.
Cheaper alternative: ask your current bank first
Your existing bank can usually drop your rate to current new-customer rates by paying a small "conversion fee" (typically ₹1,000–5,000 + GST or 0.25% of outstanding). No paperwork, no MOD, no waiting. Always ask your bank for a rate reset before considering a balance transfer.
FAQ
What's the typical processing fee for a balance transfer?
Most banks charge 0.25%–0.5% of the outstanding loan amount, with a cap (usually ₹10K-25K). Negotiate — many banks waive fees for high-CIBIL borrowers. PSU banks tend to be cheaper than private.
Will my EMI drop or my tenure shrink?
You can pick either. This calculator shows the new EMI assuming the same remaining tenure. To use the saved EMI to shorten tenure instead, plug the savings as extra principal monthly into our EMI Calculator — that's the higher-savings path.
Does my CIBIL score affect the rate I get?
Yes, significantly. CIBIL ≥ 750 typically gets the bank's lowest advertised rate. Below 700, expect a 25-50 bps premium. Pull your free CIBIL report before applying.
What documents do I need?
Loan statement (last 12 months), property docs, KYC (PAN, Aadhaar), salary slips and Form 16 (last 2 years), bank statements (6 months). Some banks also ask for a no-objection / list of outstanding documents from your existing lender.
How long does the transfer take?
Typically 30–45 days from application to disbursement. The new bank issues a cheque to your old bank for the outstanding, you continue paying EMIs to the old bank until handover, then start fresh with the new bank.