Balance transfer of a loan is a process of paying off one loan by getting another loan at a cheaper rate. It occurs when the unpaid principal amount is transferred to another bank for a lower rate of interest. By using Balance transfer, one can save money on the heavy EMI installments paid.
Almost every bank nowadays allows transfer of loan if you have not defaulted in EMI payments. The Balance transfer is ideal when one is in early stage of loan repayment tenure.
Loan balance transfer calculator is an online tool provided by various banks or online loan platforms, to let people calculate the amount they will save on transferring the loan to another bank, the rate of interest, and the new loan tenure. It is easy to use as; you only need the following details to be filled in the calculator:
Formula: Total eligibility minus current loan going on is the value of popup one can get in case of balance transfer.
And if you have the above details, then you can set the parameters for the amount of loan and tenure, which will allow the calculator to calculate the monthly EMI amount payable on the loan. The calculator also provides a graphic and tabular splitting of your loan repayments. Amortization table created provides a detailed overview of the repayment schedule.