Loan Comparison Calculator
Compare two loan offers side-by-side โ same amount, different rates, fees, or tenures โ and find out exactly which one costs you less in total.
Why EMI Alone Is the Most Misleading Loan Metric
Banks compete fiercely on EMI โ the monthly instalment โ because it's the number borrowers remember. But EMI tells you nothing about the total cost of the loan. A lender offering a slightly lower EMI through a longer tenure might cost you โน3โ5 lakh more in total interest than a lender with a higher EMI and shorter tenure. This calculator shows you the number that actually matters: Total Cost = Principal + Interest + Processing Fee.
What 0.5% Rate Difference Actually Means Over 20 Years
On a โน50 lakh, 20-year home loan:
| Rate | Monthly EMI | Total Interest | Total Cost |
|---|---|---|---|
| 8.5% | โน43,391 | โน54.14 lakh | โน1,04.14 lakh |
| 9.0% | โน44,986 | โน57.97 lakh | โน1,07.97 lakh |
| 9.5% | โน46,607 | โน61.86 lakh | โน1,11.86 lakh |
That 1% gap between 8.5% and 9.5% is a difference of nearly โน7.7 lakh over the loan's life โ enough to buy a decent used car. Smart borrowers never accept the first rate offered.
Hidden Costs Banks Hope You Overlook
- Processing fee: 0.25โ1% of loan amount + GST. On a โน1 crore loan, that's up to โน12,000 in GST alone.
- Insurance bundling: some lenders make home-loan insurance (single premium) mandatory, adding 1โ2% to the effective cost. It's rarely worth it; buy term insurance separately.
- Prepayment conditions: floating-rate loans cannot charge prepayment fees (RBI rule), but fixed-rate loans legally can (2โ3%). Check before signing.
- Conversion fee: switching from MCLR to EBLR with the same lender costs โน2,500โ5,000 โ always cheaper than full refinancing.
When Same Rate โ Same Cost
Two loans at 9% are not identical. One bank may offer monthly rests (standard), another may compound quarterly or annually (older products). Monthly rests always result in lower effective interest. Additionally, if one lender calculates EMI on the disbursed amount immediately and another defers, the actual cash outflow differs. The only trustworthy comparison: total repayment amount including all fees, as this calculator computes.