Home Loan Balance Transfer: 50 Lakh Fixed-Rate Loan with Prepayment Penalty
A fixed-rate 50 lakh home loan that still carries a prepayment penalty from the old lender, unlike most floating-rate loans in India.
Switching a ₹50,00,000 home loan from 9.5% to 8.25% over the remaining 15 years saves ₹6,66,759 in interest, against a one-time switching cost of ₹1,40,000. Switching saves you ₹5,26,759 over your remaining tenure, break-even in 38 months.
This calculation's inputs
- Outstanding loan amount
- ₹50,00,000
- Remaining tenure
- 15 years
- Current rate
- 9.5% p.a.
- New lender rate
- 8.25% p.a.
- Switching cost
- ₹1,40,000
Should you switch?
Net savings
Recommended₹5.27 Lakhs
₹5,26,759
Switching saves you ₹5,26,759 over your remaining tenure, break-even in 38 months.
Current lender (9.5% p.a.)