Check whether moving your credit-card balance to a lower promo-APR card actually saves money after the transfer fee.
How balance transfer works
Transferring your outstanding balance to a card with a low promo APR cuts the interest during the promo window. A one-time transfer fee (plus GST) applies. It pays off only if the interest saved beats that fee before the promo rate ends — so a realistic monthly payment matters.
What a credit card balance transfer does
You move an outstanding card balance to another card or lender offering a lower interest rate for a promotional period, usually 3–12 months, in exchange for a processing fee of around 1–3% plus 18% GST. It saves money only if the interest saved is larger than the fee and you clear the balance before the promo rate ends.
Worked example
₹1 lakh outstanding at the typical card rate of about 42% a year (3.5% a month), repaid at ₹20,000 a month:
| Stay on current card | ≈ ₹11,900 interest over 6 months |
| Transfer at 18% a year with 2% fee + GST | ≈ ₹4,750 interest + ₹2,360 fee = ₹7,110 |
| Saving | ≈ ₹4,800, plus the GST you avoid on the higher interest |
Traps to avoid
- New purchases on a card carrying a transferred balance may lose the interest-free period.
- If the promo rate jumps back to the full rate before you finish repaying, the saving can disappear.
- Do not use the freed-up limit on the old card for new spending.
If the debt is large, a personal loan at 11–14% for a fixed tenure can beat a short promo. See how to do a balance transfer and getting out of credit card debt. For home loans, use the home loan balance transfer calculator.
FAQs
Does a balance transfer hurt my CIBIL score?
The new application adds a hard enquiry, but lower utilisation and steady repayment usually improve the score over a few months.
Can I transfer to a card from the same bank?
Generally no — transfers are between different issuers.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.