Bajaj Finance Home Loan Balance Transfer: Steps, Costs, and Break-Even

Last updated: Sept 2026

A Bajaj Finance Home Loan Balance Transfer replaces your current loan with a new one, so the deal works only if the rate gap outweighs the switching costs. The gap matters most early in a loan, when each Equated Monthly Instalment (EMI) is mostly interest.

• What moves: the outstanding principal, not the original loan amount
• Top-up: an additional loan of up to Rs. 1 crore* or higher, subject to eligibility
• Foreclosure: Bajaj Finance charges nothing to foreclose a floating-rate home loan taken for non-business purposes; check your current lender's statement
• Break-even: Rs. 40,000 of one-time costs is recovered in 22.5 months in the example below

• Timing: savings grow when more tenure remains, as with 15 years below

  
  

Ask your current lender for a foreclosure statement first. Then compare the new EMI and total cost against your existing loan before you commit to the transfer.

It is the closure of your existing loan by a new lender, who pays off the old lender and becomes your creditor for the remaining amount. You then repay the new lender through EMIs at the new rate.

The old lender releases your original property documents to the new lender against closure. The new lender also runs its own legal and technical checks on the property before it disburses.

It is better only when the rate gap recovers your one-time costs within the years you have left, as the 15-year example below shows. Two alternatives can achieve part of the saving at lower effort.

Try the first option before you start a transfer. If your lender refuses a reduction, the transfer becomes the way to use the rate gap.

The transfer takes 6 steps, and the foreclosure statement comes first.

1. Request a foreclosure statement from your current lender showing the outstanding principal and any charges.
2. Compare the new EMI and one-time costs against your current loan.
3. Apply to Bajaj Finance with identity, income, bank and existing loan documents.
4. Complete the legal and technical verification of the property.
5. Receive the sanction, after which Bajaj Finance pays your current lender directly.
6. Collect the closure letter and the original documents, and start EMIs on the new loan.

The main costs are the processing charges at the new lender and any charge at the old lender.

Do not count a saving until you have added every one-time cost to the comparison.

Divide the one-time costs by the monthly saving. On the example below, the transfer pays for itself in 22.5 months.

Consider Karthik, a 38-year-old engineer in Chennai with a household income of Rs. 1.5 lakh a month and a CIBIL Score of 758. His outstanding loan is Rs. 40 lakh with 15 years remaining at 9.25% p.a., and he assumes a new rate of 8.50% p.a. Both rates are illustrative.

Formula used: Monthly saving = EMI at old rate − EMI at new rate. Break-even months = one-time costs ÷ monthly saving.

Trade-off: if Karthik resets the tenure to 20 years, his EMI falls to Rs. 34,713, but total interest rises to Rs. 43.3 lakh, against Rs. 30.9 lakh over 15 years. Keep the remaining tenure if you want to cut interest.

Balance transfer rates depend on your borrower type and credit assessment.

Approval timelines can extend where the current lender is slow to issue the foreclosure statement, and minimum income thresholds can differ by city. Check your home loan eligibility and model the saving with the home loan EMI calculator.