Banks quote different interest rates, processing fees and tenures for the same loan amount. Comparing only headline rate can mislead — a slightly higher rate with lower fees may cost less over the full tenure.
What to compare besides interest rate
- EMI amount — monthly cash flow impact
- Total interest payable — true cost over full tenure
- Processing fee — often 0.25–1% of loan amount
- Prepayment / foreclosure charges — important if you plan early closure
- Insurance bundling — some offers add mandatory covers
- Fixed vs floating rate — reset risk on floating loans
Step-by-step comparison
- Get sanction letter from each lender with rate, tenure and fees.
- Enter same loan amount in both scenarios.
- Compare EMI and total interest — not just monthly difference.
- Add one-time fees to total cost mentally.
- Check prepayment flexibility if bonus income is likely.
Example
₹30 lakh loan for 15 years: Bank A at 8.25% vs Bank B at 8.50%. EMI difference may look small (₹500–800/month) but total interest gap can be ₹1–2 lakh+. Bank B with zero processing fee might beat Bank A with 0.5% fee — always total the picture.
Home loan vs personal loan
Personal loans carry higher rates (12–18%+). Use comparison for like-for-like products. For property, also run Home Loan Eligibility Calculator before comparing offers.
Use Master Calc Loan Comparison Calculator
Enter two rate and tenure scenarios in our Loan Comparison Calculator. See side-by-side EMI and interest saved. Use Loan EMI Calculator for single-offer detail and EMI Prepayment Calculator if you plan extra payments — all free on Master Calc.
FAQ
Is lowest EMI always best? Longer tenure lowers EMI but increases total interest. Compare total cost.
Should I choose fixed rate? Fixed gives predictability; floating may fall if RBI cuts rates. Depends on outlook and risk comfort.
Disclaimer: Bank terms change. Confirm with lender before signing.