# Move your ₹5 crore+ loan to a better deal > A balance transfer means moving your loan to a new bank to pay less interest. A top-up means getting extra cash using the same property. Only do this if the money you save on interest is more than the cost of switching banks. Source: https://jrloanadvisors.com/services/balance-transfer-top-up/ · Author: CA Jitendraa Rathi (CA membership number 217936), JR Loan Advisors · Updated 18 Oct 2026 **[Discuss a ₹5 Cr+ loan](https://jrloanadvisors.com/contact/#enquiry)** · WhatsApp +91 94450 93336 (https://wa.me/919445093336) · Call +91 94450 93336 · [Enquiry form](https://jrloanadvisors.com/contact/#enquiry). Loans of ₹5 crore and above. ## Is the switch worth it? A worked example An illustrative case, not a quote: a ₹12 crore LAP outstanding with 10 years left, moving from 10.00% to 9.50%. - **EMI at 10.00%:** about ₹15.86 lakh a month - **EMI at 9.50%:** about ₹15.53 lakh a month - **Saving:** about ₹33,000 a month, about ₹3.96 lakh in year one and about ₹39.6 lakh over the full tenure (undiscounted) Now set the cost against that. Assume a processing fee of 0.25% (₹3 lakh), about ₹1 lakh for legal and valuation, and the capped MODT (stamp duty plus registration; confirm the current caps with the Sub-Registrar). Break-even then comes in a little over a year. Assumptions like these move a lot between lenders, so ask each one for a written fee schedule and redo the sum with real numbers. If break-even is more than about a third of the remaining tenure, the switch is usually not worth the effort and risk. Compare more than the headline rate: - **Benchmark and reset.** Moving from an MCLR (a bank lending rate)-linked loan to a repo-linked (EBLR) one changes how fast rate cuts and hikes reach you. - **Spread lock.** Check whether the spread is fixed for the tenure or can be revised on review. - **Structure.** An OD or dropline LAP lets surplus cash cut interest. A plain term loan does not. - **Part-prepayment terms** on the new loan, in writing. ## Foreclosure charges: what the RBI rule does and does not cover **RBI's Pre-payment Charges on Loans Directions, 2025 (issued 2 July 2025):** For floating-rate loans sanctioned or renewed on or after 1 January 2026: no pre-payment charges on non-business loans to individuals; for business loans to individuals and micro and small enterprises (MSEs), no charges by commercial banks (other than small finance, regional rural and local area banks), Tier 4 UCBs, NBFC-UL and AIFIs; small finance banks, RRBs, Tier 3 UCBs, state/central co-operative banks and NBFC-ML are barred only up to a ₹50 lakh sanctioned amount. Medium and larger enterprises, fixed-rate loans and older loans follow the lender's policy and the loan agreement. What this means in practice for a ₹5 crore+ borrower: 1. **Check who the borrower is.** An individual or a micro or small enterprise is covered. A medium or larger company is not. 2. **Check when the loan was sanctioned or last renewed.** Loans from before 1 January 2026 follow the terms in force when they were sanctioned. 3. **Check the lender category.** The ₹50 lakh threshold for small finance banks and NBFC-ML means a large loan from them can still carry a charge. 4. **Check the rate type.** Fixed-rate and dual-rate loans depend on whether the loan is floating when you prepay. 5. **For CC/OD limits secured on property,** no charge applies if you tell the lender, within the period in your agreement, that you will not renew, and the limit closes on its due date. Charges must be disclosed in the sanction letter, the loan agreement and, where it applies, the Key Facts Statement. A charge not disclosed there cannot be added later. ## Rent-loan (LRD) takeovers have extra moving parts A lease rental discounting loan is serviced from rent, so a takeover changes the rent flow, not just the lender: - **Tenant letter.** The tenant must sign a fresh letter (often three-way) to pay rent into the new lender's escrow account. Corporate tenants can take weeks to sign. - **Remaining lock-in.** The new lender sizes the loan on the rent still to come. A lease close to renewal shrinks the eligible amount, even if the old loan was sized when the lease was fresh. - **Escalations and vacancy.** Escalations in the lease help. Any vacancy, rent dispute or delayed payment in the bank statements hurts. - **Top-up on LRD** works only if the present value of the remaining rent supports a larger loan after the new lender's margin. ## How the takeover runs 1. **Break-even and lender shortlist** on your actual quotes, with the benchmark, spread, reset and prepayment terms compared side by side. 2. **Sanction from the new lender,** with the top-up sanctioned in the same letter if you need one. That way you register one MODT and go through one legal and valuation round. 3. **Foreclosure letter and LOD** from the existing lender: the outstanding amount, per-day interest and the list of original documents it holds. 4. **Disbursal straight to the old lender,** collection of the original title deeds, and a new MODT with the new lender. For a company, the old charge is satisfied and the new one created with the ROC. 5. **Top-up disbursal** after the takeover is complete, against the stated end-use. ## A caution before you switch A clean-looking file is not always a good switch. We also check whether the property will stay easy to reach and easy to sell, because the new bank will. Approval, rate and amount are always the lender's decision. ## Who reviews your case CA Jitendraa Rathi. He has 20 years of experience with loans, including at two banks. You may pay us a fee. We tell you the amount in writing before we start. ## Sources (checked 28 October 2026) - Reserve Bank of India, Key Facts Statement for Loans & Advances: [RBI KFS](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12663&Mode=0) (checked 28 Oct 2026). - Compare any balance-transfer offer on the full Key Facts Statement. The new lender decides. ## Frequently asked questions ### When does a property-loan or rent-loan balance transfer make sense? When the spread cut is meaningful, enough tenure remains for the saving to build up, and the total switching cost is earned back well before the loan ends. A gap of 0.25% with three years left rarely pays. A gap of 0.50% or more on a large balance with eight to ten years left often does. Run the break-even on your own quotes before you apply. ### Can my current lender charge a foreclosure fee when I switch? It depends on the loan, the borrower and the lender. RBI's Pre-payment Charges on Loans Directions, 2025 cover floating-rate loans sanctioned or renewed on or after 1 January 2026. For business loans to individuals and micro and small enterprises, commercial banks (other than small finance, regional rural and local area banks), NBFC-UL and AIFIs cannot charge. Small finance banks, RRBs, some co-operative banks and NBFC-ML are barred only up to a ₹50 lakh sanctioned amount, so a ₹5 crore+ loan from them may carry a charge. Medium and larger enterprises, fixed-rate loans and older loans follow the lender's policy and your loan agreement. ### Does the RBI rule cover my company? Only if it qualifies as a micro or small enterprise. Under the thresholds in force since 1 April 2025, a small enterprise has investment in plant, machinery or equipment of up to ₹25 crore and annual turnover of up to ₹100 crore. A borrowing company above either limit is a medium or larger enterprise, and the foreclosure clause in its sanction letter applies. ### What does switching actually cost in Tamil Nadu? Expect the new lender's processing fee, legal scrutiny and valuation charges (larger loans often need two valuations), and a fresh MODT. MODT stamp duty is 0.5% of the loan amount, capped at ₹40,000 and the registration fee is 1% of the loan amount, capped at ₹8,000, so on a ₹5 crore+ loan both caps apply. For a company or LLP there are also ROC charge filings, plus any foreclosure charge the old lender is allowed to levy. Confirm current registration rates with the Sub-Registrar before you budget. ### When does a top-up make sense? When the property or lease has headroom, your cash flows can carry the larger repayment, and the top-up costs less than the alternatives for a stated business use. It does not make sense when the lease lock-in is shorter than the new tenure, the property's value has not moved, or the funds are meant to cover overdues elsewhere. ### How long a repayment record does a takeover lender want? Usually about 12 months of clean repayment on the existing loan, with no bounces or overdue days in the bureau report. Policies vary by lender and product, and LRD takeovers also depend on the lease and tenant record. ## Discuss a ₹5 Cr+ loan Send your papers for a free first look (₹5 crore to ₹250 crore). This is not a loan approval. **[Discuss a ₹5 Cr+ loan](https://jrloanadvisors.com/contact/#enquiry)** · WhatsApp +91 94450 93336 (https://wa.me/919445093336) · Call +91 94450 93336 · [Enquiry form](https://jrloanadvisors.com/contact/#enquiry). Loans of ₹5 crore and above. You may pay us a fee. We tell you the amount in writing before we start. --- JR Loan Advisors — loan help for borrowers, Chennai & Tamil Nadu. Phone/WhatsApp +91 94450 93336 · jitendraa@jrloanadvisors.com · https://jrloanadvisors.com/