I had taken a loan of 40L with an EMI of Rs. 40000. After around 5 years and a lot of pre-payment, the outstanding loan amount is 15L (Current ROI is 10.25%). I wish to take a top up loan of around 15L but dont want the EMI to be more than the current EMI, so I am going to shift my loan to another bank which will do the balance transfer of 15L and give me a top up loan of 15L, both for a period of 20 yrs and 10.25% ROI, which will bring my total EMI down to around 30K. (Current bank is not ready to reduce EMI or give top up loan more than outstanding loan amount)

Question: I need the 15L after 7-8 months only, not now. However the interest rate offered by the bank is 10.25% on both products only if I transfer my loan before march. Is it wise to

1. Do the balance transfer now and start paying EMI on 30L (around 3L interest would have been paid in 7-8 months)

or

2. Wait for 7-8 months and then do balance transfer which would mean my current home loan would reduce by another 2-2.5L. So my total loan requirement after 7-8 months would be 27L only. however this time the top up loan will be available at 12.5% and home loan at 10.25% (considered for simplicity)