Personal loan balance transfer: compare savings after costs
A personal loan balance transfer replaces an existing loan with a new lender's facility, subject to that lender's assessment. The decision should compare the remaining cost of your current loan with the full cost of the proposed replacement.
Credswitch currently provides illustrative calculators and loan enquiry capture. It does not sanction or disburse loans, display live lender offers or run credit checks through this enquiry. Approval, product availability, rates and terms are decided by the lender after a separate assessment.
Compare the outstanding balance, not the original amount
Obtain your current outstanding principal, remaining instalments and a dated closure quote. Interest already paid is not a future saving. Compare the replacement loan over the same remaining term first so a longer tenure does not disguise a higher overall cost.
Include the cost of moving
Consider current-lender closure charges where applicable, new processing charges, taxes, documentation costs and any other disclosed fees. Confirm the exact terms with both lenders. A lower interest rate can still produce a poor outcome when costs are high or little repayment time remains.
Plan the closure and confirmation
Ask how the existing lender will be paid, how any shortfall will be handled and when the closure documents will be issued. Continue following your current repayment instructions until the lenders confirm the correct transition. Keep written records and check that the old account is properly closed.
A planning example
Suppose an illustrative like-for-like comparison shows ₹18,000 less remaining interest and ₹12,000 of total moving costs. The estimated net saving is ₹6,000. That result changes if tenure, principal or the final closure quote changes.
Illustrative scenario, not a lender quote or a promise of savings.
What to prepare
- Identity and address information requested by the lender
- Income records appropriate to your employment type
- Bank statements and a complete list of current EMIs
- Existing sanction letter, repayment schedule and foreclosure statement for a transfer
Preparation checklist only. Keep original documents secure; the current enquiry does not request document uploads. A lender may ask for different or additional records.
Questions before your next step
Does a lower EMI prove that the transfer saves money?
No. The EMI may fall because repayment is stretched over more months. Compare total remaining repayment and all moving costs.
Can every existing personal loan be transferred?
No. Eligibility, repayment requirements, minimum outstanding balance and accepted lenders vary. Credswitch accepts an enquiry but does not guarantee a transfer.
Guides for this decision
Published 2 November 2026 · Editorial approach. This is general planning information, not a personalised borrowing recommendation.