Switching your outstanding loan to a lower-rate lender can save significantly — but processing fees eat into the saving. This shows whether a balance transfer makes financial sense.
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The break-even point is when cumulative EMI saving equals the transfer cost. After that every month is net gain. Transfer is most valuable early in the remaining tenure — in later years most interest has already been paid.
Processing fee, legal charges and prepayment penalty vary by lender. Get the full cost in writing before transferring. See our full disclaimer.