Compare Loans Side-by-Side

Add up to 4 loan offers and see which is cheapest in monthly EMI, total interest, and balance paydown speed. All math runs in your browser.

Principal₹10.00 L

Interest Rate9.50%

Tenure20 yr

Monthly EMI₹9,321

Total Interest₹12.37 L

Total Payment₹22.37 L

Principal₹10.00 L

Interest Rate8.75%

Tenure20 yr

Monthly EMI₹8,837

Total Interest₹11.21 L

Total Payment₹21.21 L

Loan B saves you ₹1.16 L in total interest

vs Loan A — that's ₹484 less interest paid per month on average.

Visual Comparison

Monthly EMI

Total Cost Breakdown

Light = principal · Dark = interest paid

Outstanding Balance Over Time

Comparison Summary

Metric	Loan A	Loan B
Interest Rate	9.5% p.a.	8.75% p.a.
Tenure	20 yr	20 yr
Monthly EMI	₹9,321	₹8,837 Best
Total Payment	₹22,37,115	₹21,20,906
Total Interest	₹12,37,115	₹11,20,906 Best
Interest / Principal	123.7%	112.1% Best
EMI vs cheapest	+₹484/mo	Cheapest

Affordability Check (FOIR)

Banks allow total EMIs up to 50% of gross monthly income. Enter your income to see how each loan fits.

Monthly income ₹

How to Compare Loan Offers in India — The Right Way (2026)

Most Indian borrowers compare loans by looking at one number: the monthly EMI. That is the wrong metric. Two loans with identical EMIs can have a difference of ₹3–5 lakh in total interest over a 20-year tenure depending on rate and tenure structure. This tool shows you both — and everything in between.

Total Interest Is the Only Number That Matters

A lower EMI can mean one of two things: a lower interest rate (good), or a longer tenure (expensive). Extending tenure from 20 to 25 years on a ₹50 lakh loan at 9% cuts your EMI by ₹3,358/month — but adds ₹14.7 lakh in total interest. You pay less each month but ₹14.7 lakh more in total. The comparison table above shows both numbers for every loan you enter — always check the "Total Interest" row before deciding.

The interest/principal ratio column makes this even clearer. A 9%, 20-year home loan has a ratio of ~116% — you pay more in interest than you borrowed. At 25 years, that jumps to ~145%. Shorter tenure almost always wins on total cost; longer tenure wins on monthly cash flow. Use this tool to find the exact trade-off for your specific numbers.

4 Hidden Costs That Change Which Loan Is Cheaper

1. Processing Fees

Typically 0.5–3% of the loan amount + 18% GST, charged upfront and non-refundable. On a ₹50L loan, a 1% fee gap between two lenders = ₹50,000 you'll never see again — that's roughly 3–4 months of EMI difference. Always add the processing fee to the effective cost of each loan before comparing.

2. Prepayment Charges

RBI mandates zero prepayment penalty on floating-rate retail loans. Fixed-rate loans and many NBFC products charge 2–5% of outstanding principal. If you plan to prepay — using a bonus, inheritance, or savings — the prepayment policy can make a 0.5% rate difference irrelevant. Check the fine print.

3. Insurance Bundling

Lenders frequently bundle single-premium life or property insurance into the loan at disbursement. A ₹2L premium folded into your ₹50L loan increases your effective principal and total interest. You have the right to buy insurance separately — always ask if insurance is mandatory or optional.

4. Foreclosure / Part-Payment Terms

Some lenders allow part-payments only on specific dates, with a minimum amount (e.g. ₹10,000), or limit the number of part-payments per year. These restrictions reduce the value of prepayment. On a loan where you plan to make regular lump-sum payments, liberal part-payment terms can save more than a 0.25% lower rate.

The Flat Rate Trap — Why You Can't Compare Rates Directly

Banks and regulated lenders quote interest on a reducing balance basis — interest applies only to the outstanding principal, which falls every month as you repay. Dealers, consumer durable financiers, and some NBFCs quote a flat rate — interest applies to the original principal for the entire tenure regardless of repayment.

A flat rate of 8% over 5 years is equivalent to approximately 14.5% reducing balance — nearly double. If you are comparing a bank loan at 10% reducing with a dealer scheme at “7% flat,” the bank loan is almost certainly cheaper. Always convert to reducing balance before entering rates into this comparison tool. The conversion formula: Effective reducing rate ≈ flat rate × 1.83 (for a 5-year tenure; slightly lower for longer tenures).

Rate vs Tenure — Which Lever Has More Impact?

On a ₹50 lakh home loan, here is what each change does to total interest:

Rate −0.5%

−₹3.6L

9% → 8.5%, 20yr

Tenure −5yr

−₹14.7L

25yr → 20yr, 9%

Rate −1%

−₹7L

9% → 8%, 20yr

Cutting tenure by 5 years saves 4× more interest than cutting the rate by 0.5%. If you can afford the higher EMI of a shorter tenure, that is almost always the better financial decision — use this tool to model both and see the exact numbers for your loan size.

When a Balance Transfer Saves Money

A home loan balance transfer makes sense when the new lender offers a rate at least 50 basis points (0.5%) lower and you have more than 5 years of tenure remaining. Use this tool to compare your current loan (enter remaining principal, current rate, remaining years) against a balance transfer offer (same principal, new rate, same remaining tenure). The "Total Interest" difference is your gross saving. Subtract the balance transfer processing fee (typically 0.5–1%) to get your net saving.

Rule of thumb: if the net saving exceeds 12 months of EMI, the transfer is worth the paperwork. Use our prepayment calculator to model the impact of prepaying the balance transfer fee upfront on your new loan.

5 Rules for Comparing Loan Offers

Always compare total interest, not EMI. EMI is a cash-flow number. Total interest is the cost number. Optimise for cost unless cash flow is genuinely constrained.
Keep tenure the same across offers. Comparing a 20-year offer against a 25-year offer by EMI is meaningless — the tenure difference explains most of the EMI gap. Set the same tenure in both cards to isolate the rate difference.
Convert flat rates before entering. Multiply any flat rate by ~1.83 to get the reducing balance equivalent before putting it in this tool.
Add processing fees to the principal. If Loan A charges 1% processing fee on ₹50L (= ₹50K), set Loan A's principal to ₹50.5L to capture the true upfront cost in the total interest comparison.
Use the FOIR check before applying. Banks reject applications where total EMIs exceed 50% of gross income. Enter your income above and eliminate any loans that would push you over the limit before you apply — hard enquiries from rejected applications hurt your CIBIL score.

For loan-specific calculators, see our home loan EMI calculator, personal loan EMI calculator, or the prepayment simulator to model how extra payments shorten your cheapest loan even further.