Compare loan offers on their true cost, not the headline rate
This loan comparison calculator puts two, three or four loan offers side by side. For each offer, enter the amount, rate, whether it is quoted reducing or flat, the tenure, processing fee, other charges, any insurance taken from the payout, and the prepayment charge. The table shows the EMI, the money you actually receive, total interest, total cost of credit and the APR — one yearly rate that includes every rupee of fees — with the cheapest offer highlighted.
Lenders compete on the number in the advert. A low flat rate, a large processing fee or a bundled insurance premium can make the offer with the lowest EMI the most expensive. Comparing APRs side by side removes that. It runs in your browser; the results are estimates, not financial advice.
How to use the Loan Comparison Calculator
- Choose how many offers to compare (2–4) and type each lender’s figures from its quote or Key Facts Statement.
- Set Rate type to Flat if the lender quotes a flat rate — common for consumer-durable, two-wheeler and app loans.
- Leave GST at 18% unless your lender says otherwise; it applies to fees and prepayment charges, not to the EMI.
- Optionally add an extra payment every month, or close the loan after a number of months, to compare offers the way you plan to repay.
- Read the verdict and the table. The lowest APR, total cost and EMI are marked in green; copy the comparison to share it.
Loan Comparison Calculator features
Up to four offers
Banks, NBFCs and lending apps on one screen, each with its own amount, rate type and tenure.
True APR
The internal rate of return of your real cash flows, including fees, GST, insurance and prepayment charges.
Flat rates decoded
A flat quote is converted to the reducing rate with the same EMI before comparing.
Extra payments and early closure
See which offer stays cheapest when you prepay every month or foreclose early.
Worked example: three ₹5 lakh offers for 36 months
The bank quotes 11.5% reducing with a 2% fee: EMI ₹16,488, and ₹4,88,200 reaches your account after ₹11,800 of fee and GST — an APR of 13.16%. The NBFC advertises a lower 10.99%, but 3.5% plus ₹999 in fees with GST and ₹7,500 of insurance leave you ₹4,70,671, so its APR is 15.22% despite the lowest EMI (₹16,367). The lending app quotes 6.5% flat with a 1% fee.
A 6.5% flat rate over three years equals 11.96% reducing — higher than the bank’s rate — yet the small fee gives the app the lowest APR, 12.79%, and ₹1,968 less total cost than the bank. Ranking by headline rate or by EMI would have picked the wrong offer twice. Change any figure and the ranking updates.
How the comparison is calculated
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the monthly reducing rate. A flat rate charges interest on the full amount for the whole tenure, so its EMI is P × (1 + flat rate × years) ÷ months.
- Money you receive = loan − processing fee − other charges − GST on both − insurance deducted.
- Total cost of credit = interest paid + all fees, GST, insurance and prepayment charges.
- APR = the monthly rate that makes the money you receive equal the present value of every payment, × 12. Extra payments and foreclosure are part of the cash flows, so the APR reflects how you will actually repay.
- RBI requires lenders to show the APR in a Key Facts Statement before you sign (circular of 15 April 2024, for retail and MSME term loans from 1 October 2024). Your result should be close to it; a large gap means a charge is missing from one side.
Comparing fairly
Compare the same amount and tenure where you can. If amounts differ, rank by APR: rupee totals favour the smaller loan. A longer tenure lowers the EMI but raises total interest. Insurance protects your family if you die, so it is not pure cost — but it is optional, and a term plan may be cheaper. For a single offer in depth, with a schedule, use the personal loan calculator; for the APR of any loan in dollars or rupees, use the APR calculator.
Loan Comparison Calculator FAQ
How do I compare two loan offers?
Enter both offers with every fee, then compare their APRs. The loan comparison calculator works out the APR from the money you receive and the EMIs you pay, so fees, GST and insurance are counted.
Is a lower EMI always the cheaper loan?
No. A longer tenure, a flat-rate quote or high upfront fees can give a lower EMI but a higher total cost and APR. Check the total cost of credit row.
How do extra payments change the comparison?
Extra monthly payments cut the interest and shorten the loan, but a prepayment charge plus GST on each part-payment eats into the saving. Enter your plan to see which offer wins.
Are prepayment charges allowed in India?
On fixed-rate loans, yes, if disclosed in the Key Facts Statement. Floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026 cannot carry them (RBI Pre-payment Charges Directions, 2025) — enter 0% for those.
Why does the APR differ from the interest rate?
Fees are paid upfront while you repay the full amount with interest, so the true yearly cost is higher than the quoted rate.