Loan Comparison Calculator
Compare two loans side by side
Loan 1
Loan 2
Loan Comparison Results
About Loan Comparison Calculator
The Loan Comparison Calculator helps you compare two loans side by side. Whether you're comparing home loans, car loans, or personal loans from different banks, know which offer truly saves you money.
See monthly EMI, total interest payable, total payment including processing fees, and how much you save by choosing the better loan. Make informed borrowing decisions.
How to Use This Loan Comparison Calculator
Step 1: Enter Loan 1 details — amount, interest rate, tenure, processing fees.
Step 2: Enter Loan 2 details from another bank or offer.
Step 3: Click "Compare Loans" to see side-by-side comparison.
Step 4: Review EMI, total interest, total payment, and which loan is better.
Step 5: Use the Reset button to clear all inputs and compare different loan offers.
Why Use a Loan Comparison Calculator?
✓ Save Money
Find the cheaper loan offer. Even 0.5% lower interest rate can save lakhs on large loans like home loans.
✓ Avoid Hidden Costs
Processing fees, legal charges, and prepayment penalties add to loan cost. Include them in comparison for true cost.
✓ Tenure Planning
See how different tenures affect EMI and total interest. Choose the tenure that fits your budget.
✓ Bank Negotiation
Show bank A's offer to bank B to negotiate better rates. Knowledge is power in loan negotiation.
Factors to Consider When Comparing Loans
- •Interest Rate (APR): Compare Annual Percentage Rate which includes interest + fees, not just the advertised rate.
- •Loan Tenure: Shorter tenure = higher EMI but lower total interest. Longer tenure = lower EMI but much higher total cost.
- •Processing Fees: Ranges from 0.5-2% of loan amount + 18% GST. Ask for fee waiver during festive offers.
- •Prepayment Penalty: Some banks charge 2-5% for early repayment. Floating rate loans usually have zero penalty.
- •Hidden Charges: Legal fees, valuation charges, document retrieval fees, late payment fees, loan cancellation fees.
Loan Types & Their Features
| Loan Type | Interest Rate | Tenure | Fees |
|---|---|---|---|
| Home Loan | 8.4-9.5% | 10-30 years | 0.5-1% |
| Car Loan | 9-12% | 3-7 years | 1-2% |
| Personal Loan | 11-18% | 1-5 years | 1-3% |
| Education Loan | 8-13% | 5-15 years | 1% + GST |
Tips to Get the Best Loan Deal
- ✓Improve credit score: 750+ CIBIL score gets 0.5-1% lower rates. Pay credit cards on time, reduce credit utilization.
- ✓Negotiate with banks: Use competitor offers to get better rates. Banks often match or beat competitor rates.
- ✓Choose shorter tenure: If EMI is affordable, choose shorter tenure to save lakhs in interest.
- ✓Ask for fee waiver: During festive seasons, many banks waive processing fees completely.
Loan Comparison Formula
EMI = P × r × (1+r)^n / ((1+r)^n - 1)
Total Cost = (EMI × Months) + Processing Fees
Better Loan = Lower Total Cost (including all fees)
What to Check When Comparing Loans
| Factor | Why It Matters |
|---|---|
| Check prepayment penalties | Some loans charge 2-3% for early payment |
| Compare processing fees | Fees can range from 0.5% to 2% of loan amount |
| Look at foreclosure charges | Floating rate loans usually have no foreclosure charges |
| Consider GST on fees | Processing fees have 18% GST added |
Frequently Asked Questions
Look at three things: Monthly EMI, Total Interest, and Total Payment. A lower interest rate doesn't always mean lower total cost if the loan has higher fees or longer tenure. Always compare the total amount you'll pay, not just the monthly EMI.
Lower interest rate saves money over time. Shorter tenure reduces total interest but increases monthly payment. Example: ₹10L loan at 9% for 5 years = ₹20,800 EMI, total ₹12.48L. Same loan at 10% for 3 years = ₹32,267 EMI, total ₹11.62L. Calculate both before deciding.
Compare the effective interest rate including fees. Example: ₹10L loan at 8% with ₹10,000 fees vs 8.5% with no fees. Calculate total cost including fees to find which is cheaper.
If you plan to prepay, compare loans with lower prepayment penalties. Some banks charge 2-3% on prepayment, others charge nothing. A loan with slightly higher rate but no prepayment penalty might be better if you plan to pay early.
Fixed rate: EMI constant throughout loan tenure (1-2% higher). Floating rate: EMI changes with market rates (initially lower). Floating saves money when rates fall, fixed gives certainty. For long-term loans (10+ years), floating usually saves 2-3% overall.
Longer tenure = lower EMI but MUCH higher total interest. Example: ₹50L at 9%: 10 years = ₹63,333 EMI (₹26L interest). 20 years = ₹44,986 EMI (₹58L interest). Choose shortest tenure you can afford for maximum savings.
Hidden charges: Processing fee (0.5-2%), Legal/technical fee (₹5,000-20,000), Prepayment penalty (2-5%), Late payment fee (2-3%/month), Loan cancellation fee (1-2%), Statement charges, Document retrieval fees. Ask lender for complete fee list before signing.
Effective Rate = (Total Interest + Fees) ÷ (Loan Amount × Tenure) × 100. Example: ₹10L loan, ₹50,000 interest, ₹10,000 fees, 3 years = (60,000) ÷ (10,00,000 × 3) × 100 = 2% effective rate (much higher than stated rate!). Always compare effective rates.
Secured loan (Home, Car, Gold): Lower interest rates (8-12%), longer tenure, requires collateral, lower risk for bank. Unsecured loan (Personal, Education): Higher rates (12-18%), shorter tenure, no collateral needed, faster approval. Use our calculator to compare both types.
Credit score (CIBIL) 750+ = Best rates (lowest 0.5-1%). 700-749 = Standard rates (+0.5-1%). 650-699 = Higher rates (+2-3%). Below 650 = May be rejected or very high rates (18-24%). Check your score before applying to negotiate better rates.