Product · Balance Transfer

Home Loan Balance Transfer

Reviewed by Jay Patel· Last reviewed: 25 Apr 2026

Balance Transfer (BT) allows you to move your existing home loan, LAP, or business loan from your current lender to a new bank offering a lower interest rate. Even a 0.25% rate reduction may save money over the remaining tenure after costs are considered. An advisor may help review available lender information and documentation steps, but the new lender controls approval, terms, and disbursal.

Starting rate

8.25% p.a.

Max amount

₹10 Cr

Max tenure

30 yrs

Processing fee

0.25% – 0.50%

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Balance Transfer Interest Rates — Listed Lenders (April 2026)

Compare balance transfer rate ranges from 15 listed banks and NBFCs in this dated snapshot. Confirm current terms with each lender.

Bank	Rate (p.a.)	Processing Fee	Max Amount	Max Tenure	Highlights
SBI	8.25% – 9%Lowest listed in snapshot	0.25% (max Rs 10,000)	Rs 10 Cr	30 yrs	Top-up up to 20% extra
BoB	8.25% – 9%Lowest listed in snapshot	0.25% (max Rs 7,500)	Rs 10 Cr	30 yrs	Listed BT processing fee
PNB	8.3% – 9.05%	0.35% (max Rs 10,000)	Rs 8 Cr	30 yrs	Attractive BT rates
Canara	8.3% – 9.1%	0.50% (max Rs 10,000)	Rs 5 Cr	30 yrs	Competitive BT rates
Union	8.3% – 9.1%	0.50% (max Rs 10,000)	Rs 5 Cr	30 yrs	Attractive BT rates
LIC	8.3% – 9.2%	0.50% (max Rs 10,000)	Rs 5 Cr	30 yrs	Women borrower benefit
HDFC	8.35% – 9.1%	0.50% (max Rs 15,000)	Rs 10 Cr	30 yrs	Top-up up to 25%
ICICI	8.35% – 9.15%	0.50% (max Rs 15,000)	Rs 10 Cr	30 yrs	Up to 30% top-up
Bajaj	8.35% – 9.25%	0.50% (max Rs 10,000)	Rs 5 Cr	30 yrs	Flexi top-up
Axis	8.4% – 9.2%	0.50% (max Rs 10,000)	Rs 5 Cr	30 yrs	Up to 20% top-up
Federal	8.4% – 9.3%	0.50% (max Rs 7,500)	Rs 5 Cr	30 yrs	NRI BT specialist
Kotak	8.45% – 9.25%	0.50% (max Rs 10,000)	Rs 5 Cr	20 yrs	Competitive BT rates
Tata	8.45% – 9.35%	0.50%	Rs 5 Cr	30 yrs	Tata brand reliability
IDFC	8.5% – 9.3%	0.50%	Rs 5 Cr	30 yrs	Competitive BT rates
Bandhan	8.5% – 9.35%	0.50%	Rs 3 Cr	25 yrs	Affordable housing BT

As of April 2026, balance transfer interest rates start from 8.25% per annum and go up to 9.25% per annum across 15 banks, with loans up to Rs 10 crore and tenure up to 30 years. Actual rate depends on applicant profile, loan amount, and property.

Balance Transfer Eligibility Criteria

Check if you qualify. These are general guidelines — actual eligibility may vary by bank.

Salaried Applicants

Age: 21 – 65 years
Min Income: Rs 25,000/month
Experience: 2 years
CIBIL Score: 700+

Self-Employed Applicants

Age: 21 – 70 years
Min Income: Rs 3 Lakhs/year ITR
Business Vintage: 3 years
CIBIL Score: 700+

How to Compare Balance Transfer — 5 Simple Steps

Use the comparison as a starting point; the lender handles assessment, approval, and disbursal.

Share Your Requirements

Share your Balance Transfer needs — amount, tenure preference, and property details. An advisor can review the information provided, while lender assessment timing and decisions vary.

Compare Available Lender Information

Review available lender information in a side-by-side comparison of indicative rate, EMI, processing fee, and total interest. Confirm current lender documents before applying.

Compare Lender Terms

Compare lender terms based on rate, tenure flexibility, fees, and service information. The lender controls the final offer and decision.

Documentation & Filing

Use the lender's current checklist to compile documents. Submit the application through the channel the lender confirms and retain copies of everything provided.

Lender Sanction & Disbursal

Sanction and disbursal timing are controlled by the lender and may vary with underwriting, property checks, and documentation. Confirm current lender timelines and disbursal conditions.

Frequently Asked Questions — Balance Transfer

Answers to the most common questions from borrowers across India.

When should I consider a balance transfer?

Consider a BT when: (a) another bank offers a rate at least 0.25-0.50% lower, (b) you are in the early years of your loan tenure (more interest left to save), (c) your CIBIL score has improved since the original loan, or (d) you want to top-up and another bank offers better combined terms.

How much can I save with a home loan balance transfer?

A 0.50% rate reduction on a Rs 50 Lakh loan with 20 years remaining may save Rs 6-8 Lakhs in total interest. The result depends on outstanding amount, remaining tenure, rate difference, and fees; calculate it using current lender terms.

What are the costs involved in a balance transfer?

Costs may include a processing fee (often 0.25-0.50% of outstanding), property valuation fee (Rs 5,000-15,000), legal verification fee, and MODT/registration charges in some states. Any waiver is lender- and offer-specific; confirm current lender documents.

Can I add a top-up loan with a balance transfer?

Yes. Most banks allow a top-up of 10-30% over the transferred amount (within property valuation limits). This is a popular way to get additional funds at home-loan rates rather than taking a separate personal or business loan.

Does a balance transfer affect my CIBIL score?

A balance transfer closes the old loan account and opens a new one, which may cause a minor temporary dip. However, the new lower EMI improves your debt-to-income ratio, which positively impacts your score within 2-3 months.

Apply for Balance Transfer in Your City

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