A transfer is worth it when the interest you save over the remaining tenure clearly exceeds the processing fee on the new loan. That is the whole test - the new lender closes your old loan online, so effort is not the constraint. In practice it means a rate gap of about one percentage point or more, at least a year of tenure left, and a balance large enough that the percentage translates into real money.
Rate gap alone tells you very little. It has to be read against the other two.
These combinations tend to clear the bar comfortably.
Worth stating plainly, because most content on this topic never does.
Every lender will show you a saving. Their number assumes their fee structure and their tenure, so run it yourself first.
No. A lower EMI achieved by extending the tenure can increase the total interest you pay. Compare total interest remaining over the same period, not the monthly figure, and subtract the processing fee before deciding.
Most lenders want to see around 12 EMIs of clean repayment on the existing loan before they will consider a transfer. Requirements vary, so check with the specific lender rather than assuming.
Converting revolving credit card outstanding, which runs at roughly 36 to 42 percent annualised, into a personal loan in the low teens. The rate gap there is far larger than anything available on a loan-to-loan transfer.
The trap is comparing EMIs instead of total interest. A longer tenure at a lower rate can feel cheaper monthly and cost more overall. Compare total interest, subtract the processing fee, and decide on that number - not on how much effort you imagine it will take, because the new lender does that part.
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