Online calculator that helps you save on loans

NEW DELHI, INDIA: Deal4loans.com has launched an online home loan balance transfer calculator which instantly calculates how much you can save by switching your home loan.

All you need to do is insert your existing home loan rate and prepayment charges and based on that it gives you instant quote of four other bank rates and tells you how much you can save.

With prepayment charges being reduced to nil, the opportunity for the customer to save by changing the home loan bank is big.

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You can check how much you can save by transferring your existing loans to some other bank at lower rates with a simple calculation available in Deal4loans.com.

'Switch to save' is a phenomenon that is rapidly gaining in popularity, particularly as consumers search for ways to limit their spending during these financially challenging times. By accessing the Home Loan Balance Transfer Calculator you can save in your hard earned money. Even a 1.0 per cent reduction in the interest rate can save you more money than Rs. 1.5 lakh on a loan of Rs 10 lakh over a 20 year period. This is very much simple as you just need make a few calculations and check out the difference.

Example. If a person takes a loan from X bank at a interest rate of 14.65 per cent for a tenure of 20 years for a loan amount (Rs. 30 lacs), his EMI would amount to Rs. 38,731 while another Y bank lends at a rate of 10.75 per cent his new EMI would amount to Rs. 31,065.

Here, as a thumb rule, one should go for switching in the loans, only if the difference in interest rates is at least 1.5-2 per cent, with remaining loan tenure of around 8-10 years.