What Is a Balance Transfer?

A balance transfer moves a balance to another account or card, preferably one with a lower or 0% interest rate. That lower rate is typically an introductory one and will only last for the promotional period which is typically anywhere from six months to nearly two years. There’s also typically a balance transfer fee which can range from 2% to 5% of the amount that you’re transferring.

Before you apply for a new card, check your current credit cards for balance transfer offers. Most cards do not allow you to do a balance transfer to another card issued from the same bank, but utilizing the offers you already have could be a better option than getting a new card.

The best balance transfer cards are generally those with lengthy introductory 0% APR periods. For those who find themselves making just the minimum payments without making headway on the principal debt, a balance transfer card might help them whittle down the balance.

Here's the formula to calculate EMI:

Where
E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum,
then r = 10.5/12/100=0.00875)
n is loan term / tenure / duration in number of months

We understand that all of this may seem overwhelming to look at. However, with Mosampati’s EMI calculator, all you need to do is:
Enter the loan amount you want to apply for
Enter Illustrative Interest Rates (In %) for your old loan
Enter Loan Tenure in Month for your old loan
Enter already paid EMI for your old loan
Enter Processing fee during the transfer
Enter Loan Tenure (in months) after transfer
Enter Expected interest rate (in %) after transfer
Once you key in these details, the EMI Calculator will offer accurate results for:

New Monthly EMI
Total Loan Eligibility Outstanding, i.e., Principal + Interest to be paid, over the course of your repayment tenure.

Why should I use one?

A balance transfer occurs when you move debt from one account to another, normally to one with lower interest rates, and can be the perfect option for those looking to reorganize their debt, pay off a medical bill or student loan and more. By completing a balance transfer, you’ll end up paying less interest each month or no interest at all, depending on if your card comes with an introductory 0% APR offer on balance transfers. Paying less in interest means you’ll end up saving a portion of money each month that would have normally gone to your issuer (a balance transfer fee usually applies).

Using our calculator to find the perfect balance transfer offer

To choose the best balance transfer card for your lifestyle, decide how much time you’ll need to pay off your debt by using our calculator.

Benefits of Using Home Loan Balance Transfer Calculator

Some of the key benefits of using a home loan balance transfer calculator are discussed below:

1. It is easy to use and doesn’t require any expert assistance. One only needs to input some key details, such as the existing interest rate and tenor.

2. Using a home loan balance transfer calculator helps one understand the savings that can be made after the balance transfer.

3. One an individual uses a balance transfer calculator, he/she can also get an idea of the expected EMIs payable after the balance transfer.

4. Also, individuals can get an idea about the possible returns if the savings due to home loan balance transfer are invested.

5. With a home loan balance transfer calculator, individuals can also know the expected repayment tenor after the switchover and take an informed decision accordingly.