Interest Rates Hiked? – Don’t Worry; Take a Home Loan Balance Transfer!

Case – Mr. Sunil Verma, a small scale businessman living in Mumbai had bought a home in Mumbai taking a home loan via an NBFC. Here are the loan details;

Loan Amount – 40 Lakhs

Loan Tenure – 25 years

Interest Rate – 9%

EMI Amount – 33,568

Sunil has 20 years to repay the loan. He has been barely managing his family expenses along with repaying the home loan EMI for the initial months. Few days ago, NBFC’s have increased interest rates by 2% on all loans. This news did not go well with Sunil as he will now have to pay a higher EMI.

Previous EMI prior to rate increase – 33,568

New EMI after interest rate hike – 39,205

Difference in EMI – 5,637

As you can see, there is a huge gap between the EMI what Sunil had to pay earlier and the amount he has to pay now after the interest rate hike. This is bad news for the middle class families that have to use a major part of their income towards repaying the home loan. Now, they will have to increase their savings level in order to accommodate the home loan repayment.


This is not just the only solution. Ruloans has always worked towards customer satisfaction and hence we have the best solution in this scenario; “HOME LOAN BALANCE TRANSFER”.

Yes, using a home loan Balance Transfer, you can shift your current loan from an NBFC to a Bank. The Banks have not increased their rates and hence when you compare it with the NBFC’s rate, you’ll find a big difference. You can take advantage of this scenario and shift your loan. This will ensure that you will save a lot of interest money. This is how the scenario would look like if you shift your loan from an NBFC to a Bank.

Title NBFC Bank
Loan Amount 40 Lakhs 40 Lakhs
Loan Tenure 25 years 25 years
Interest Rate 11% 8.50%
EMI Amount 39,205 32,209

As you can see, if you shift your loan from an NBFC to a Bank, you can save a lot of money. Sunil can save approximately 7000 rupees on his EMI with this shift. This is a huge amount which he can utilize on family expenses or else in building a corpus fund. Hence this is the correct time to shift your home loan and enjoy benefits like Lower EMI, Lower Interest rates and better loan terms.

Here’s a final comparison of the difference Loan EMI between a Bank and NBFC.

Ruloans advises its customers to look for changes in the interest rates and always seize the opportunity of using a home loan balance transfer as this can not only help you save lot of money but also give you a wide range of benefits like Top up loan etc.

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