The AXIS Home Loan Balance Transfer Calculator is a pivotal tool for simplifying home loan balance transfers. This guide provides an in-depth exploration of this calculator, aiding you in efficiently managing your home loan.
Unraveling Home Loan Balance Transfer
A Home Loan Balance Transfer is an opportunity for borrowers to move their existing loan to a different lender, such as AXIS, to take advantage of lower interest rates. This is especially valuable for those who initially got loans at higher rates but now qualify for reduced rates due to improved credit standings.
Delving into the AXIS Home Loan Balance Transfer Calculator
The AXIS Home Loan Balance Transfer Calculator is a straightforward online tool that helps borrowers understand the potential savings from transferring their home loan. By entering details like your current loan balance and interest rate, along with AXIS’s proposed rate, you can determine the financial gains of a loan transfer.
Utilizing the AXIS Calculator
- Input Current Loan Details: Add your existing loan amount, interest rate, and the remaining tenure.
- New Loan Terms with AXIS: Enter AXIS’s interest rate and the proposed new loan tenure.
- Result Analysis: The calculator shows the new EMI, total interest due, and savings.
CreditDharma AXIS Home Loan Balance Transfer Calculator Formula
The Calculator takes input as shown below to calculate the Balance Transfer benefits.
| Outstanding Principal | P |
| Yearly ROI | ROI |
| Tenure | T |
| New Tenure | NT |
| NewROI | NROI |
Outputs that we will get from the calculator will be
| Total Savings | S |
| Existing EMI | E |
| New EMI | NE |
| Monthly EMI Savings | ES ( E – NE ‘) |
| NewROI | NROI |
For example, assume that a person took a home loan of which Rs. 88 Lakhs Outstanding Principal is yet to be paid for a tenure of 16 years at an agreed-upon interest rate of 10.5%. and now wants to transfer the home loan to AXIS with new interest rate of 9.45% and without changing the tenure of 16 years So, according to the formula –
- P = 88,00,000
- ROI = 10.5%
- T = 16 Years
- NT = 16
- NROI = 9.45
Now using the Balance Transfer Formula:
R = ROI/100
E = [P x R x (1+R) ^T] / [((1+R) ^T)-1]
Current Amount = A = E*T*12
NR = NROI/100
NE = [P x R x (1+R) ^NT] / [((1+R) ^NT)-1]
New Amount = NA = NE*NT*12
ES = A – NA
A home loan balance transfer calculator will swiftly provide you with precise calculations, specifically in this scenario.
Understand the EMI Savings
| Description | Amount (INR) |
|---|---|
| Original EMI | 94,797 |
| New EMI with AXIS | 89,049 |
| Monthly Savings | 5,748 |
| Total Savings | 11,03,649 |
Benefits of the AXIS Calculator
- Ease of Use: Just enter the required information for quick calculations.
- No Cost, No Hassle: Free and accessible without any need for registration.
- Flexibility: Experiment with various balance transfer scenarios.
- Timeliness: A vital asset in the current home loan market.
Advantages of AXIS Home Loan Balance Transfer
- Interest Rate Reduction: A lower interest rate can significantly reduce the overall interest cost.
- Top-up Loan Option: Availability of an additional top-up loan for extra financial requirements.
- No Hidden Charges: No prepayment or foreclosure charges for loans with a floating interest rate.
It is advisable to visit Axis’s banks official website for more information.
Conclusion
The AXIS Home Loan Balance Transfer Calculator is an essential tool for optimizing your home loan expenses. It offers clear insights into potential savings, aiding in well-informed decisions about transferring your home loan to AXIS.
Also check home loans offers from top banks
| Lender | Home Loan Interest Rates (Above 75 lakhs) | Home Loan Interest Rates (Above 30 lakhs to 75 lakhs) | Home Loan Interest Rates (Up to 30 lakhs) |
|---|---|---|---|
| LIC Housing Finance | 8.50% – 10.75% | 8.50% – 10.55% | 8.50% – 10.35% |
| State Bank of India | 8.50% – 10.05% | 8.50% – 10.05% | 8.50% – 10.15% |
| HDFC Bank Limited | 8.40% onwards | 8.40% onwards | 8.40% onwards |
FAQs
Transferring your home loan balance typically takes between 5 to 20 days. This duration can vary based on the processing speed of your current bank and the time needed for documentation and approval processes at the new bank.
Initiating a balance transfer for your home loan does not directly impact your credit score. In fact, it may have positive effects, such as reducing the number of active loan accounts and decreasing your overall credit utilisation.
Consider transferring your home loan balance if you find yourself subject to an interest rate that exceeds the current market average. Some Banks are known for offering attractive rates for these kinds of balance transfers.
Absolutely. Under the Income Tax Act of 1961, you qualify for tax deductions on both the principal and interest amounts of your balance transfer loan. Since these tax advantages can change from year to year, it’s advisable to consult with banks for up-to-date information on the tax benefits available for your loan.
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