Lowest Home Loan Interest Rate for Balance Transfer in India

Even if you are moderately familiar with the concept of home loans, with either you having availed of it or someone close to you, you must have also heard about ‘home loan balance transfer.’ This is the practice of essentially shifting the loan from one bank to another, usually in pursuit of a lower interest rate.

Let’s explore what the lowest home loan interest rate for balance transfer in India is, what this concept is, how this works, and more.

What is a Home Loan Balance Transfer?

Balance transfer of home loan is the practice where a client shifts an already availed home loan from the existing bank to a new bank, which is offering a lower interest rate, a longer repayment tenure, or any other favourable feature. This is done by those who are either having difficulties paying off their existing home loans or who find a better deal to pay off their loans.

How does this work?

Under this, a client evaluates various home loan balance transfer schemes provided by banks and chooses the best alternative. The newly chosen bank pays off the existing home loan to the current bank, and expects the remaining balance of the loan to be paid to it. The balance, which is transferred, is now paid on the basis of new terms that are favourable to the client. Simply put, it is the process of shifting a home loan from one bank to another, in search of better loan repayment terms.

Lowest Home Loan Interest Rate for Balance Transfer in India 2025

Here is the table showcasing the lowest home loan transfer interest rate provided by various banks in India in 2025:

Top Banks Offering the Lowest Home Loan Interest Rate for Balance Transfer

There are banks that provide various schemes and facilities for the lowest interest rate on home loan balance transfer. Here is a detailed breakdown highlighting their key features and best rates:

1. Union Bank

With Union Bank, the account holder gets an interest rate of up to 7.35% p.a. on their home loan balance transfers. This is liable for 90% of the loan amount on the property cost, with an average tenure of 30 years. The bank also offers top-up loan plans on bank transfers for their existing customers who have an extra requirement for funds.

2. State Bank of India

The bank transfer interest rates for home loans begin at 7.5% p.a. at SBI. It is levied on the amount that is 90% of the property value and has a tenure of 30 years. The SBI Maxgain offers a home loan overdraft facility to borrowers. Moreover, the female customers at SBI are eligible for the lowest home loan interest rate for balance transfer, with a specialised concession of 0.05%. Its Home Loan Takeover Scheme allows a customer to transfer their home loans from various types of banks and other financial institutions to SBI, subject to the stated eligibility criteria.

3. Bank of Baroda

Starting with a sweeping 7.45% p.a., Bank of Baroda offers its lowest home loan interest rate for balance transfer through its Home Loan Takeover Scheme. This facility is available for both Indian residents and NRIs. Apart from the good interest rate, customers also benefit from its free credit card, free accidental insurance, and others.

4. HDFC Bank

HDFC also offers a home loan transfer scheme with a 7.90% p.a. interest rate for a maximum loan amount limit of Rs. 10 Crores. The maximum tenure under this scheme is 30 years. The bank also offers a top loan facility of up to Rs. 50 lakhs in addition to this balance transfer scheme.

5. ICICI Bank

Under the home loan Balance Transfer scheme provided by ICICI, you can transfer your loan for a maximum tenure of 20 years at a home loan balance transfer interest rate of 7.70% p.a. ICICI also provides a top-up loan facility, which can be availed by the customers for additional fund requirements.

6. Axis Bank

The Home Loan Balance Transfer facility provided by Axis Bank allows the customer to transfer their existing home loan to Axis Bank, for a maximum tenure of 30 years. Like other top banks, Axis Bank also provides the facility of a top-up loan.

7. IDFC FIRST Bank

IDFC First Bank also provided a loan transfer scheme with a maximum tenure of 30 years for salaried employees and 25 years for self-employed customers. IDFC provides funding in accordance with the market value of the property and the original amount of the loan availed.

Ways to Get the Lowest Interest Rate on Home Loan Balance Transfer

By following some proven strategies and changing your financial habits, you can secure the advantages of the lowest home loan interest rate for balance transfer. Here are some tips:

1. Check CIBIL Score:

The bank goes through your CIBIL score to understand your spending and financial health. With a good CIBIL score, you have more chances of receiving a lower interest rate on a home loan balance transfer.

2. The Tenure Matters:

Choosing the right tenure can play a great role in your interest rate. A longer tenure will have lower EMI but a higher interest amount. To understand your interest rate and amount based on tenure, consider using the Bank's Home Loan EMI Calculator.

3. Compare Charges:

When opting balance transfer at the lowest interest rate from a lender, compare and calculate all the charges of different banks. Check their related fees and see through which lender you save the most on your balance transfer.

My Mudra Tip

With My Mudra, you can easily find the right home loan balance transfer at competitive interest rates. Our finance experts provide detailed comparisons of top loan options, helping you choose the best fit while staying within your limit.

Summing Up

Transferring your current loan to a bank that provides the lowest interest rate on home loan balance transfer is a step that can save you a lot of money over the years. The My Mudra team ensures instant loan approvals, quick disbursals, and competitive interest rates. Reach out to us anytime, and we will be there to support you.

Also Read:
- Home Loan Interest Rates of All Banks in India
- How to Transfer Home Loan from One Bank to Another