Quick answer: Moving a ₹50 lakh home loan with 20 years left from 9% to 7.15% cuts the EMI by about ₹5,770 a month — roughly ₹13.8 lakh less interest over the remaining tenure. After switching costs of around ₹40,000, you recover them in under a year. A rate gap of 0.5% or more, with 10+ years left, usually makes a transfer worth it.
Offer till 31 December 2026: under LIC HFL’s Homecoming scheme, a balance transfer has no processing fee (only the technical fee), with a top-up at 0.50% above your home loan rate.
Updated: October 2026 · By Vijay Arjun, authorised LIC HFL DSA since 2002. Examples use LIC HFL’s starting rate of 7.15% for eligible borrowers; your rate depends on your CIBIL score and profile. Try your own numbers in the balance transfer calculator.
How much can you save by transferring your home loan?
Monthly EMI saving and total interest saved when you move to 7.15% and keep the same remaining tenure:
| Outstanding loan | Years left | Current rate | EMI saved / month | Total interest saved |
|---|---|---|---|---|
| ₹30 lakh | 15 | 8.5% | ₹2,325 | ₹4.2 lakh |
| ₹30 lakh | 20 | 9.0% | ₹3,462 | ₹8.3 lakh |
| ₹50 lakh | 15 | 8.5% | ₹3,875 | ₹7.0 lakh |
| ₹50 lakh | 20 | 9.0% | ₹5,770 | ₹13.8 lakh |
| ₹50 lakh | 20 | 9.5% | ₹7,390 | ₹17.7 lakh |
| ₹75 lakh | 15 | 9.0% | ₹8,027 | ₹14.4 lakh |
| ₹75 lakh | 20 | 9.5% | ₹11,085 | ₹26.6 lakh |
Want to finish sooner instead? Keep paying your old EMI after the transfer and the extra goes to principal — you close the loan years early.
What does a home loan balance transfer cost?
- New lender’s processing fee — as per LIC HFL’s schedule; ask us for the current fee and any offer.
- MODT on the new loan — in Telangana about 0.6% of the loan amount (see MOTD charges).
- Legal and valuation charges for the property check.
- Foreclosure charges at your current lender — none on floating-rate home loans to individuals under RBI rules; check if yours is a fixed-rate loan.
Break-even: divide the total cost by the monthly saving. With ₹40,000 of costs and ₹5,770 saved a month, you are ahead after about 7 months.
When does a balance transfer make sense — and when not?
| Usually worth it | Usually not worth it |
|---|---|
| Rate gap of 0.5% or more | Gap below about 0.25% |
| 10+ years left on the loan | Only a few years left |
| Good repayment record and CIBIL score | Recent missed EMIs |
| Outstanding ₹20 lakh or more | Very small outstanding balance |
Tip: before you switch, ask your current lender whether it will lower your rate for a small conversion fee. If it won’t match, a transfer is the next step.
How does a home loan balance transfer to LIC HFL work?
- Get your loan statement and the outstanding amount from your current lender.
- Apply to LIC HFL with KYC, income documents and 12 months’ repayment record.
- LIC HFL sanctions the loan after its credit and property checks.
- LIC HFL pays your old lender directly; you collect your original documents from them and deposit them with LIC HFL (MODT).
- Your new, lower EMI starts with LIC HFL.
Documents: see the home loan documents checklist, plus your current loan’s sanction letter, statement and list of documents held.
Closing a loan instead of transferring it? Read LIC HFL home loan foreclosure: no charge on floating-rate loans to individuals.
Frequently asked questions
How much rate difference is needed for a home loan balance transfer?
Usually 0.5% or more, with at least 10 years left. Smaller gaps can still pay on large loans — the break-even calculation tells you.
Will a balance transfer affect my CIBIL score?
A new loan enquiry is recorded and your old loan shows as closed. With regular EMIs on the new loan, the effect is usually small and short-lived.
Can I get extra money (a top-up) with a balance transfer?
Often, subject to your eligibility and the property’s value. Tell us how much you need and we will check what LIC HFL can offer with the transfer.
How long does a balance transfer take?
Usually two to three weeks once your documents and the current lender’s statement are ready; collecting the originals from the old lender is often the slowest part.
See your saving: balance transfer calculator · transfer your home loan to LIC HFL