1. What is Home Loan Transfer?

Home loan transfer to SBI allows borrowers to shift their existing home loan from another lender to SBI to benefit from lower interest rates (starting at 8.40% p.a.) and better terms. The process includes transfer costs like processing fee (0.35% of loan amount).

2. How Does the Calculator Work?

The calculator uses the savings formula:

Where:

• \( PMT_{old} \) — Original monthly payment (INR)
• \( n_{old} \) — Remaining tenure in original loan (months)
• \( PMT_{new} \) — New monthly payment with SBI (INR)
• \( n_{new} \) — New tenure with SBI (months)

Explanation: The formula calculates the difference between what you would pay with your current lender versus what you would pay after transferring to SBI.

3. Importance of Loan Transfer Calculation

Details: Calculating potential savings helps determine if transferring your home loan to SBI is financially beneficial, considering both interest savings and transfer costs.

4. Using the Calculator

Tips: Enter your current monthly payment and remaining tenure, then the proposed SBI monthly payment and tenure. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What costs are involved in transferring to SBI?
A: Typical costs include processing fee (0.35% of loan amount), legal charges, valuation fee, and stamp duty for fresh mortgage creation.

Q2: How much can I save by transferring to SBI?
A: Savings depend on interest rate difference, loan amount, and remaining tenure. Even 0.5% lower rate can save lakhs over loan term.

Q3: Does SBI offer special rates for loan transfers?
A: Yes, SBI offers competitive rates starting from 8.40% p.a. for home loan transfers, often lower than many private banks.

Q4: How long does the transfer process take?
A: Typically 15-30 days, depending on document submission and property valuation.

Q5: Are there prepayment charges on the old loan?
A: Most lenders charge 0-2% prepayment penalty. Check with your current lender before initiating transfer.