Frequently Asked Questions
Compare: interest rate (lower = less interest paid), tenure (longer tenure = lower EMI but higher total interest), processing fee, prepayment charges, and hidden fees. The total cost of borrowing (Principal + Total Interest + Fees) is the true measure.
Usually yes, but check the tenure too. A 9% loan for 15 years may cost less total interest than an 8.5% loan for 20 years. Always compare total payment, not just EMI or rate.
Doubling tenure roughly doubles the total interest paid. ₹30 lakh @ 8.5% for 10 years: total interest ≈ ₹15L. Same loan for 20 years: ≈ ₹37L. Shorter tenure = less interest but higher EMI.
When you can comfortably afford the higher EMI and want to minimize total interest outgo. Also consider: a lower rate may come with higher processing fees that negate the savings on a short-duration loan.
About this calculator
The Loan Comparison Calculator puts three loan offers side by side so you can see which is genuinely cheapest. Each column has its own name, amount, rate and tenure, and the result for each loan shows the EMI, total interest, total payment and how much more it costs than the cheapest option.
It is built for the most common real decision: two or three lenders quote different rates and tenures for the same amount. A lower rate with a longer tenure can cost more in total than a higher rate over a shorter tenure, and the "extra cost" line makes that obvious. You can also compare the same lender at different tenures to decide how long to borrow for.
How to use it
- Name each loan in the Loan Name fields, for example the lender.
- Enter the Loan Amount for each offer.
- Enter each Interest Rate and Tenure in years.
- Press Compare All Loans.
- Look at the Total Interest and Extra cost lines first, then check the EMI against your budget.
Tips and common mistakes
- Compare like with like: the same amount and, ideally, the same tenure, so the rate is the only variable.
- Add processing fee, legal and valuation charges to each loan before deciding.
- Ask each lender whether the rate is fixed or floating and what the reset rule is.
- If two loans are close, choose the one with no prepayment penalty.
Frequently asked questions
What factors should I compare when choosing a loan?
Compare the interest rate, the tenure, the total interest, the processing and other fees, and prepayment charges. The total cost of borrowing is the best single measure.
Is a lower interest rate always better?
Usually, but check the tenure. A longer tenure at a slightly lower rate can still cost more in total interest than a shorter one.
Can I compare more than three loans?
Run the comparison twice with different sets of offers, or use the Loan Comparison tool on this site that lets you add rows.
Does the result include fees?
No. Add the processing fee and other charges to the total interest to compare real costs.
What does extra cost mean?
It is the additional total interest of that loan compared with the cheapest loan on the page.
Should I pick the lowest EMI?
Only if cash flow is the constraint. The lowest EMI usually comes from the longest tenure, which raises total interest.