Home/ Loans/ Balance Transfer

Balance Transfer

Move to a better rate

Transfer your existing loan to another lender for a lower interest rate, reduced EMI or better terms — and save on total interest.

Check Eligibility Calculate EMI Talk to an Expert

What is Balance Transfer?

A balance transfer moves your outstanding loan from your current lender to a new one offering better terms — usually a lower rate. This can reduce your EMI and total interest, though transfer costs (processing, legal, valuation) should be weighed against the savings. Try our Balance Transfer calculator on the Calculators page.

Who it may suit

Borrowers paying a higher rate than the current market
Those wanting a lower EMI or shorter tenure
Anyone with a good repayment track record

Documents you'll typically need

KYC — PAN & Aadhaar / address proof
Existing loan statement & sanction letter
Income proof & bank statements
Property documents (for secured loans)

Common reasons for delay or rejection

Transfer costs outweighing the interest savings
Weak repayment history on the existing loan
Incomplete documents from the current lender

Current Market Rates

Indicative interest rates

Approximate current market ranges as of June 2026. Your actual rate depends on your profile and is decided by the respective bank or NBFC.

Starting from

7.10%

per annum*

Typical market range

Depends on loan type

The new rate depends on the loan you transfer. On a home loan balance transfer, rates can start around 7.10% (public sector banks). On a personal or business loan transfer, your new rate depends on your current credit profile and income. The aim is simply to move to a meaningfully lower rate than you're paying now.

*Indicative current market rates as of June 2026, compiled from publicly available sources. Shah Communication is a financial consultancy — the final interest rate, eligibility and terms are decided solely by the respective bank or NBFC based on your profile.

Good to Know

Charges & eligibility

Actual rates, processing fees and charges vary by lender and are confirmed at the time of application.

📉

Interest Rate

Depends on your credit profile, income and the lender. We help you compare suitable options.

🧾

Processing Fee

A one-time fee charged by the lender to process your application.

✅

Eligibility

Based on income, existing EMIs (FOIR), credit score, age and employment type.

Overview

Balance Transfer details

Balance Transfer is refinancing — switching your existing loan to a new lender for better rates, revised EMIs or adjusted tenure.

Transfer your loan balance to another lender for lower interest rates, revised EMIs or adjusted tenure.
Opt for a top-up loan up to 100%* of your current loan.
Lenders readily approve transfers — borrowers with a good repayment history are low-risk customers.
Most transfer requests happen after significant corrections in interest rates.
Repo-linked loans are available starting at 7.10%* for up to 30 years.
Ideal to transfer in the early years when your interest liability is high.

How It Works

Features of Balance Transfer

🆕
The outstanding balance from the existing lender is treated as a fresh loan by the new lender.
🔍
The new lender assesses income stability, credit score and KYC documents like in a new loan process.
📝
Application for balance transfer must be submitted to the existing lender for approval.
🏠
Property documents are verified by the new lender's panel advocate and valuer.
📄
The existing lender issues a No Objection Certificate (NOC) only after a minimum loan tenure is completed.
🧾
New lenders may charge processing fees between 0.15%* and 0.50%* of the loan amount.
💳
After transfer, the borrower starts paying EMIs to the new lender.

Compare Lenders

Balance Transfer interest rates of top banks — 2026

Indicative rates and tenures from leading banks and housing finance companies. Final terms are decided by each lender based on your profile.

Top Banks	Interest Rate (per annum)	Maximum Tenure
HDFCHDFC Bank	7.20%* – 8.65%*	30 years
PNBPunjab National Bank	7.20%* – 7.50%*	30 years
KMBKotak Mahindra Bank	7.65%* – 7.99%*	30 years
BAJAJBajaj Finserv	7.30%* – 8.10%*	30 years
SBIState Bank of India	7.25%* – 9.20%*	30 years
ICICIICICI Bank	7.30%* – 8.65%*	30 years
BOBBank of Baroda	7.20%* – 8.65%*	30 years
SHFShriram Housing Finance	11.00%* – 13.00%*	30 years
L&TL&T Housing Finance	8.10%* – 8.90%*	30 years
AXISAxis Bank	7.25%* – 7.70%*	30 years
IDFCIDFC Bank	8.10%* – 8.90%*	30 years
ICICIICICI Home Finance	8.10%* – 8.90%*	30 years
BOIBank of India	7.10%* – 7.80%*	30 years
BOMBank of Maharashtra	7.10%* – 7.80%*	30 years
CBICentral Bank of India	7.15%* – 7.25%*	30 years
PNBHFLPNB Housing Finance Ltd	8.00%* – 10.00%*	30 years
UCOUCO Bank	7.15%* – 7.85%*	30 years
UBIUnion Bank	7.15%* – 8.60%*	30 years
LICHFLLIC Housing Finance Ltd	7.15%* – 8.25%*	30 years
IDBIIDBI Bank Ltd	7.70%* – 11.75%*	30 years
IBHIndiabulls Housing Fin. Ltd.	8.40%* – 9.00%*	30 years
IIBIndusInd Bank (Prime)	8.35%* – 9.45%*	30 years
IOBIndian Overseas Bank	7.10%* – 7.85%*	30 years

*Rates are indicative, vary by lender and applicant profile, and are subject to each lender's policy at the time of application. Logos are trademarks of their respective owners, shown for identification only.

Am I Eligible

Balance Transfer eligibility

Typical criteria lenders look at. Exact requirements may vary by lender.

Existing Loan	Must already have a loan from an RBI-registered bank or NBFC with a good EMI repayment record
Age	21–70 years for salaried individuals and self-employed (may vary by lender)
Occupation	Salaried, self-employed, professionals, business owners and pensioners are eligible
Experience	Minimum 2–3 years in job; business vintage of 3 years with at least 2 years of profit history for self-employed
Credit Score	Minimum 700 or above; low scores can lead to rejection
Loan-to-Value (LTV)	Up to 90%* of the property's value, depending on the lender's policy

Step by Step

Balance Transfer process

Pre-steps: Research and shortlist a new lender offering better terms; calculate savings before proceeding.
Contact existing lender: Apply for a balance transfer and share reasons for the switch.
Obtain NOC: Once approved, get a No Objection Certificate (NOC) or Consent Letter from your existing lender.
Submit documents to new lender: Provide all KYC, property and loan documents including interest statement and loan balance certificate.
Takeover: The new lender repays the outstanding amount to the old lender and takes over the property documents.
Sign agreement & pay fees: Read the sanction letter and sign after verifying terms, interest and hidden charges.

Disbursal is done via cheque, draft or RTGS to the previous lender's account. Future EMIs will be payable to the new lender under the revised terms.

Keep Ready

Key documents required for Balance Transfer

🪪 Identity Proof (any one)

PAN Card
Aadhaar Card
Voter ID
Passport
Driving License

📍 Address Proof (any one)

Registered Rent Agreement
Aadhaar Card
Driving License
Lease Agreement
Passport
Latest Gas/Electricity Bill

🧾 Income Proof — Salaried

Salary slips for the last 6 months
ITR for the previous 2–3 years
Form 16
Bank statement for the last 6–12 months showing salary credits

💼 Income Proof — Self-Employed

ITR for the last 2–3 years as per lender requirement
Profit & Loss Statement
Balance Sheet for the last 2 years
GST or Sales Tax Registration Certificate
Partnership Deed (if applicable)
Certificate of Incorporation (for limited companies)

📝 Other Essential Documents

Filled and signed loan application form
Recent passport-sized photographs

📄 Property-Related Documents

All property documents showing ownership chain for ~30 years
Encumbrance Certificate for the past 30 years
Receipts of property tax payments

FAQ

Balance Transfer questions

How do I know if a balance transfer is worth it?

Compare the interest you would save against the total transfer cost. Use our Balance Transfer calculator for an estimate.

Will my EMI reduce?

It can, if the new rate is lower — or you can keep the EMI and shorten the tenure.

What rate will I get on transfer?

It depends on the loan type. A home loan transfer can start around 7.10%; personal/business depend on your current profile.

Does Shah Communication approve the transfer?

No — the new lender decides approval, rate and terms.

Ready When You Are

Let's find the right option for you

Check your indicative eligibility, compare suitable options and get expert guidance at every step.

Check Eligibility Book Consultation Talk on WhatsApp