A home loan balance transfer EMI calculator helps you estimate the EMIs after shifting your existing home loan to a new lender. You only need to enter details, such as outstanding loan amount, tenure, and interest rates to get an accurate estimate. 

This makes it easier for you to compare repayment options and make informed financial decisions before opting for a balance transfer.

The home loan balance transfer EMI calculator is simple and hassle-free. You can follow these quick steps to get accurate results:

1. Enter the loan amount 

2. Use the slider to select your tenure in months or years using the dropdown 

3. Adjust the applicable interest rate  

You can check the EMI details as well as the amortisation schedule.  Also, you can change the details in the calculator to understand the difference in home loan EMIs for distinct tenures and rates.

Before you calculate your home loan balance transfer EMI online with the EMI calculator available on Bajaj Markets, let us understand the formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:

• P = Loan Amount (Principal)

• R = Monthly Interest Rate

• N = Loan Tenure in Months

Suppose you have an outstanding housing loan of ₹20 Lakhs with a remaining tenure of 15 years at an interest rate of 9.5% p.a. You decide to transfer this balance to a new lender offering a lower rate of 8% p.a. for the same tenure.

1. Calculating Your Current EMI (at 9.5% annual interest)

P = ₹20,00,000

R = 9.5 / 12 / 100 = 0.007917

N = 180 months

Using the formula, your EMI would be:

EMI = [20,00,000 × 0.007917 × (1+0.007917)^180] / [(1+0.007917)^180 – 1] = ₹20,895.

2. Calculating Your New EMI After Balance Transfer (at 8% annual interest)

P = ₹20,00,000

R = 8 / 12 / 100 = 0.00667

N = 180 months

Using the same formula for the new loan terms:

EMI = [20,00,000 × 0.00667 × (1+0.00667)^180] / [(1+0.00667)^180 – 1] = ₹19,113.

Hence, you would save ₹1,782 per month (₹20,895 - ₹19,113) by transferring your home loan balance.

This home loan balance transfer calculator makes your calculation simple and quick. Here are some key benefits of using this tool:

• Instantly compare EMIs and interest charges from different lenders

• Get accurate and error-free EMI calculations

• View EMI, interest, and repayment details within seconds

• Use the calculator unlimited times, free of cost

• Simple and user-friendly interface for hassle-free use

• Accessible anytime from the comfort of your home

When transferring your home loan, several financial and personal factors determine the EMI you will pay. Understanding these helps you choose the most cost-effective option.

• Loan Amount: The larger the loan amount, the higher your EMI, as repayment is spread across a bigger principal

• Interest Rate: A lower rate of interest reduces your EMI significantly, while a higher rate increases your monthly burden

• Repayment Tenure: Extending the tenure lowers your EMI but increases the total interest paid over time

• Processing Fees and Other Charges: One-time costs like processing fees, legal charges, or transfer fees add to your overall repayment cost

• Lender’s Policies: Different lenders offer varying terms, home loan balance transfer eligibility criteria, and interest rates, which directly impact your EMI

• Credit Score: A higher credit score helps you negotiate better interest rates, leading to lower EMI obligations

When using the home loan refinance calculator, consider the following points to compare repayment options and select the one that best suits your finances:

• Enter Accurate Loan Details: Input the correct loan amount, applicable interest rate, and the desired repayment tenure, as these factors form the basis of EMI calculation

• Check Fixed vs. Floating Rate: Indicate whether the rate is fixed or floating, as floating rates may change over time and alter EMIs

• Account for Fees and Charges: Include costs such as processing fees, legal charges, and transfer expenses to obtain a realistic repayment estimate

• Ensure Budget Compatibility: Compare the calculated EMI with your monthly income and obligations to ensure affordability