Loan Comparison Calculator

Q: How do I compare two loan offers?

Compare the total cost: all the interest over the tenure plus the processing fee and GST. The calculator does this for two offers at once.

Q: Is GST charged on a loan processing fee?

Yes, 18% GST applies to processing fees and most other loan charges. Interest itself has no GST.

Q: Is a lower interest rate always cheaper?

No. A ₹5 lakh, 5-year loan at 10.5% with a 2% fee costs about ₹4,344 more than one at 11% with no fee.

Q: What is APR on a loan?

The annual percentage rate is the yearly cost of the loan including fees, expressed as a rate. Indian lenders must show it in the Key Fact Statement, and it is the fairest single number for comparing offers.

Q: Should I choose a fixed or floating rate?

A floating rate usually starts lower and has no prepayment penalty for individuals, but it rises when the RBI raises the repo rate. A fixed rate gives a steady EMI but may cost more and can carry a prepayment charge.

Compare two loan offers by what they really cost: EMI, total interest and the processing fee with GST. Enter the loan amount, the tenure and each lender’s rate and fee.

Loan amount (₹)

Tenure (years)

Offer A: rate (% a year)

Offer A: processing fee (%)

Offer B: rate (% a year)

Offer B: processing fee (%)

Cheaper offer

Offer B, by ₹4,344

	Offer A	Offer B
Monthly EMI	₹10,747	₹10,871
Total interest	₹1,44,817	₹1,52,273
Processing fee + 18% GST	₹11,800	₹0
Total cost of the loan	₹1,56,617	₹1,52,273

Offer B costs ₹4,344 less over 5 years once the processing fee is counted. A lower rate does not always win: a high fee is paid up front, on day one.

GST at 18% applies to processing fees. Insurance, documentation charges and prepayment charges are not included; add them to the fee if a lender bundles them.

Why compare total cost, not just the rate?

Lenders compete on the headline rate, but the total cost of a loan is the interest you pay over the whole tenure plus the fees you pay up front. A loan with a slightly higher rate and no processing fee can be cheaper than one with a lower rate and a high fee, especially on shorter loans.

How the comparison works

Total cost = (EMI × number of months − loan amount) + processing fee × 1.18

The 1.18 adds the 18% GST charged on processing fees.

Worked example

₹5 lakh personal loan for 5 years:

Offer A: 10.5% with a 2% fee → EMI ₹10,747, interest ₹1,44,817, fee with GST ₹11,800, total ₹1,56,617
Offer B: 11% with no fee → EMI ₹10,871, interest ₹1,52,273, total ₹1,52,273

Offer B has the higher rate but costs about ₹4,344 less.

What else to compare

Fixed or floating rate. A floating rate moves with the RBI repo rate; a fixed rate does not.
Prepayment charges. None on floating-rate loans to individuals for non-business use; fixed-rate loans may charge.
Bundled insurance. Some lenders add a policy to the loan. Add its premium to the fee to compare fairly.
The Key Fact Statement. Lenders must give you one with the annual percentage rate (APR), which includes fees.

When to use a different calculator

Only need the EMI for one loan? Use the Personal Loan EMI Calculator or the Home Loan EMI Calculator.
Planning to pay off early? Use the Loan Prepayment Calculator.