AXIS Home Loan Balance Transfer Calculator

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

  1. Input Current Loan Details: Add your existing loan amount, interest rate, and the remaining tenure.
  2. New Loan Terms with AXIS: Enter AXIS’s interest rate and the proposed new loan tenure.
  3. 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 PrincipalP
Yearly ROI ROI
TenureT
New TenureNT
NewROINROI

Outputs that we will get from the calculator will be

Total SavingsS
Existing EMIE
New EMINE
Monthly EMI SavingsES ( E – NE ‘)
NewROINROI

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 –

  1. P = 88,00,000
  2. ROI = 10.5%
  3. T = 16 Years
  4. NT = 16
  5. 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

DescriptionAmount (INR)
Original EMI94,797
New EMI with AXIS89,049
Monthly Savings5,748
Total Savings11,03,649

Benefits of the AXIS Calculator

  1. Ease of Use: Just enter the required information for quick calculations.
  2. No Cost, No Hassle: Free and accessible without any need for registration.
  3. Flexibility: Experiment with various balance transfer scenarios.
  4. 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

LenderHome 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 Finance8.50% – 10.75%8.50% – 10.55%8.50% – 10.35%
State Bank of India8.50% – 10.05%8.50% – 10.05%8.50% – 10.15%
HDFC Bank Limited8.40% onwards8.40% onwards8.40% onwards

FAQs

What is the time required for Balance Transfer of a home loan ?

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.


Impact of a home loan balance transfer on your credit score

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.


When is it advisable to opt for a balance transfer of your home loan?

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.


Is there a tax advantage with a balance transfer loan?

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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