Before you switch: look beyond the interest rate
Compare the costs of moving your loan before deciding whether a lower rate helps.
Start with the loan you have
Collect your outstanding principal, current EMI, interest rate and remaining repayment schedule. Ask your existing lender for a dated statement and a written settlement estimate. The original loan amount alone does not tell you what a switch could save today.
Put both options on the same timeline
Compare keeping your loan with transferring the same outstanding amount over the same remaining tenure. Then compare any alternative tenure separately. A longer repayment period can make the EMI smaller while increasing the total amount repaid.
Include the cost of moving
Ask both lenders for an itemised list of applicable processing, settlement, administrative and other charges, including taxes. Check whether fees are paid upfront or added to the new loan. Use the actual written terms rather than assuming every lender charges the same amount.
Make a considered decision
Compare the remaining payments on your current loan with all payments and upfront costs under the proposed loan. Keep the comparison separate from any top-up: extra money borrowed is not a saving. Request a repayment schedule and confirm when the old account will be closed.