Loan Interest Comparison Tool

Shopping for a loan? Don't just settle for the first offer. Our Loan Interest Comparison Tool helps you evaluate multiple loan offers side-by-side to ensure you pick the absolute best deal for your wallet.

Why Loan Interest Comparison Matters

A difference of just 0.5% in interest rates can translate to savings of lakhs of rupees over the lifetime of a home loan. Comparing options is the single most profitable step you can take before borrowing.

Interest rate vs total cost

Banks often advertise attractive "starting from" interest rates but may hide costs elsewhere. By calculating the Total Cost (Interest + Processing Fees), you get the true picture.

Hidden costs in loans

• Processing Fees: Can range from 0.5% to 2% of the loan amount.
• Insurance Bundling: Some lenders force you to buy insurance policies.
• Prepayment Charges: Penalties for paying off debt early.

How Loan Interest Comparison Tool Works

This tool acts as a neutral referee between different bank offers.

Inputs used for comparison

• Loan Amount & Tenure: Common factors for all options.
• Bank Offers: Input the Rate and Fee for each bank you are considering.

Calculation logic explained simply

We calculate the EMI for each offer independently. Then we add the one-time processing fee to the total interest payable to give you a "Total Cost of Loan" figure. The lowest figure wins.

Comparing Loans Based on EMI

EMI is what leaves your bank account every month, so it's important. However...

When lower EMI is misleading

Lenders can lower your EMI by simply increasing your tenure (e.g., 20 years to 25 years). This lowers monthly pressure but drastically increases your total interest burden. Always compare EMIs for the same tenure.

Comparing Loans Based on Total Interest

This is the smartest way to compare.

Why total interest matters most

Interest is the "rent" you pay for using someone else's money. Your goal should be to pay as little rent as possible. Use our Effective Interest Rate Calculator to deep dive into this.

Loan Interest Comparison for Different Loans

Home loan comparison

check for "Spread" over the repo rate. A lower spread means better long-term savings. Use the Loan EMI Calculator to cross-check individual offers.

Personal loan comparison

Look strictly at the Annual Percentage Rate (APR). Since tenures are short, processing fees have a higher impact on the effective rate.

Car loan comparison

Dealers often subvention schemes (0% interest) but may remove cash discounts on the car price. Always compare the total outflow.

Common Mistakes People Make While Comparing Loans

• Ignoring processing fees (which can be 10,000 to 50,000 INR).
• Comparing fixed rate vs floating rate loans directly.
• Not negotiating. Show Bank B's offer to Bank A to get a better rate!

Why Use an Online Loan Interest Comparison Tool?

Manually creating Excel sheets to compare compound interest schedules is tedious and error-prone. Our tool does the heavy lifting instantly, giving you a clear, unbiased verdict on which loan is truly cheaper.

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