Home loan spread check, and whether switching would pay back its fees
Your floating rate is a benchmark that moves plus a spread your lender set when you took the loan. The benchmark is public. The spread is the part that is yours to ask about. This page works out your spread, shows what each quarter point of it is worth on your loan, and then tests a switch to another lender against its fees. It shows facts and arithmetic. It does not ask you to switch or to stay.
Nothing you type leaves your browser. We count only that a tool was used, never the figures.
1. Your spread
Rate and benchmark are in your sanction letter and your latest statement. If your loan is linked directly to the RBI repo rate, the benchmark is today's repo rate.
A note you can send your lender
It asks the lender to reassess, which is the bank's decision. It does not promise a result. Fill in the square brackets.
What the rules say
- Spread cuts. From 1 October 2025 RBI removed the three-year lock-in on changing the non-credit-risk part of the spread on floating home loans. Banks may now reduce it earlier on justifiable, non-discriminatory grounds. The change is not automatic and it is the bank's decision (Business Standard).
- Spread increases. RBI's guidance is that spreads should not be raised during the loan. The exception is the credit-risk part, after a significant fall in the borrower's credit profile (ELP Law).
- Reset choices. At a rate reset, a lender may offer to switch you to a fixed rate. See higher EMI or longer tenure after a rate change.
- Closing a loan. Under RBI rules from September 2023, a lender must return your property papers within 30 days of the loan being repaid, or pay compensation of Rs 5,000 for each day of delay.
More on the spread itself: what a quarter of a percent costs.
2. If you moved to another lender
This uses the balance, months left and rate you entered above. Enter what the other lender has quoted you and every charge you would pay.
Questions
Can my bank reduce my spread?
Since 1 October 2025 RBI no longer bars a bank from reducing the non-credit-risk part of the spread before three years. Whether it does so is the bank's decision, on grounds it can justify and apply to similar borrowers alike. You can ask it to reassess.
Can the bank raise my spread?
RBI's guidance is that it should not during the loan, except for the credit-risk part after a significant fall in your credit profile.
How is the break-even worked out?
The charges you would pay, divided by how much less you would pay each month. It holds only while the gap between the two rates stays what you entered, and only if you keep the loan that long. The tables show what happens if the gap narrows, or if you close the loan early.
Sources: Business Standard, 21 October 2025; ELP Law. Check your own loan agreement for how your spread can change.