Ask your lender to reprice before transferring: compare both proposals
Moving a loan is not the only way to explore a different rate. A written repricing proposal from the current lender gives you another option to compare with a full balance transfer.
Compare more than the new rate
Ask whether repricing changes the spread, benchmark, rate type or just the current rate, and whether a conversion charge applies. Then compare the revised existing-loan schedule with the external lender's schedule and switching costs. Keep assumptions consistent. A verbal offer or an estimated savings message is not enough to establish the revised contract or its effective date.
A worked situation
Suppose an internal conversion costs ₹4,000 and a transfer costs ₹18,000. If both produce similar future payments over the same remaining term, the larger transfer cost needs a separate benefit to justify it. The conclusion changes if the repayment schedules or future reset mechanisms differ.
Your next-step checklist
- Request a dated internal repricing proposal
- Check which contract terms change
- Compare both complete cost schedules
Must my lender agree to reduce the rate?
Do not assume so. Ask about the available policy and obtain a written response. Comparing options does not guarantee a concession or approval from another lender.
Official references and further reading
These links help you check current information. A provider-specific page describes that provider’s process; it is not a universal eligibility rule or a claim of partnership.
General educational information, not a personalised credit recommendation. Examples use assumed inputs. Rates, charges, eligibility and documents vary; confirm your own lender’s current written terms.