₹4.20 Cr Home Loan Balance Transfer + Top-Up for a Self-Employed Promoter Using Cash-Profit & ABB Surrogate
A self-employed logistics firm partner in Thane West had a ₹3.10 crore outstanding home loan with an HFC at 9.95% p.a. and needed ₹1.10 crore in top-up funds, but two retail banks rejected the file because the firm's net profit after tax (PAT) on ITR looked low due to heavy fleet depreciation.
Published: 3 November 2026
Deal Tombstone #BC-2026-10Home Loan & Balance Transfer
Sanctioned
₹4.20 Cr
Location
Ghodbunder Road / Pokhran, Thane West
Lender Category
Private Sector Bank (Banking Surrogate)
Pricing / Rate
8.55% p.a. (Home Loan BT) · 9.15% p.a. (Top-Up)
Tenor & Moratorium
216 Months (18 Years)
Key Coverage / Ratio
72% Combined LTV · 54% Assessed FOIR
1. Borrower profile & initial credit bottleneck
On a pure net-PAT basis, the promoter's ITR showed only ₹34 lakh annual taxable income, which capped standard 55% FOIR loan eligibility at ₹2.45 crore — below even the existing ₹3.10 crore principal.
The existing HFC had raised the floating rate to 9.95% p.a. while offering new borrowers 8.65%.
The borrower wanted to know the exact break-even month after paying Maharashtra's 0.30% Article 6 MODT stamp duty and ₹15,000 Notice of Intimation fee.
2. How the file and cash-flow waterfall were structured
Prepared a gross-cash-accrual income assessment adding back non-cash fleet depreciation (₹48 lakh), partner salary/interest on capital, and Average Bank Balance (ABB) surrogate credits across 12 months.
Secured a ₹4.20 crore sanction from a leading bank: ₹3.10 crore Home Loan Balance Transfer at 8.55% p.a. (saving 140 bps) plus ₹1.10 crore Top-Up at 9.15% p.a. over 18 years (within 72% combined LTV on the ₹5.85 crore flat valuation).
Calculated total Maharashtra switching costs at ₹1.48 lakh (₹1.26L MODT + ₹15K NOI + processing fee), which was recovered in just 4.2 months from the ₹35,800/month interest saving on the ₹3.10 crore base loan.
3. Before vs. after sanction comparison
Comparison of initial position vs. final sanctioned terms (BC-2026-10)
