Compare two loan offers

Loan Comparison Calculator

A lower EMI doesn't always mean a cheaper loan. Compare two offers side by side to see the true cost of each over its full tenure.

Offer A

₹
5%8.5% p.a.20%

As a % of loan amount, one-time.

Offer B

₹
5%9% p.a.20%

As a % of loan amount, one-time.

Calculation Assumptions

Results can differ across apps when compounding or contribution timing assumptions change.

  • EMI is calculated using the standard reducing-balance formula.
  • Processing fees are treated as a one-time cost added to total cost, not financed into the loan.
  • Rate changes over time (floating rates), foreclosure charges, and insurance add-ons are not modeled.

Reviewed October 2026

Comparing loan offers properly

The lowest interest rate isn't always the cheapest loan. A higher processing fee can wipe out a lower rate, especially on shorter loans. This calculator compares the total cost of two offers.

Worked example

₹10 lakh for 5 years. Offer A: 10.5% with a 1% fee — EMI ₹21,494, total cost about ₹12,99,634. Offer B: 10% with a 3% fee — EMI ₹21,247, total cost about ₹13,04,823. The lower-rate offer costs about ₹5,000 more.

What else to compare

  • 18% GST on processing fees (not included in the comparison).
  • Foreclosure and part-payment charges, especially on personal loans.
  • Bundled insurance — it's optional, and its premium is often financed into the loan.
  • The APR in the lender's Key Fact Statement, which RBI requires for retail loans.

Frequently asked questions

Which is better: lower EMI or lower total cost?

Lower total cost saves money. A lower EMI from a longer tenure usually means paying much more interest overall.

What is APR on a loan?

The Annual Percentage Rate includes interest and fees, so it shows the real cost of borrowing. Lenders must show it in the Key Fact Statement.

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