Loan Comparison Calculator

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Loan 2

Comparison Summary

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Total Interest
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Compare Any Loan: Personal, Home, or Car

Choosing the right loan can save you a significant amount of money. This versatile calculator is designed to help you compare any two loan offers—whether it's a personal loan, home loan, or car loan. By looking beyond just the advertised interest rate, you can make a truly informed decision. Here’s what to consider when you compare loan interest rates and terms:

  • Monthly EMI: While a lower EMI seems attractive, it might be due to a longer tenure, which could increase your total cost.
  • Total Interest: This shows the actual cost of borrowing the money. A lower total interest is always better.
  • Processing Fee: A one-time fee charged by the lender. It's a hidden cost that must be included in the total loan cost for a fair comparison.
  • Total Payment (Principal + Interest + Fee): This is the most important number. It represents the total amount of money you will pay back to the lender. The loan with the lower Total Payment is the more economical choice.

Frequently Asked Questions (FAQ)

This is a universal loan comparison tool. You can use it to compare offers for personal loans, home loans, car loans, education loans, or any other type of amortizing loan. For example, if you're looking to compare personal loan interest rates from different banks, simply enter the details for each offer to see which is more cost-effective.

A loan with a slightly lower interest rate might come with a very high processing fee. This fee can sometimes offset the savings from the lower rate, making another loan with a zero processing fee a better deal. Always compare the Total Payment to see the true cost.

A longer tenure reduces your monthly EMI, making payments more manageable. However, it drastically increases the total interest you pay. A shorter tenure means higher EMIs but significant savings in interest. Use the calculator to see how different tenures impact your total cost.

It depends on your financial situation. If your monthly budget is tight, a lower EMI might be necessary. However, if you can afford a higher EMI, choosing the loan with the lowest total cost will save you more money in the long run. The best choice is a balance between affordability and long-term savings.