How to compare loans properly
The lowest interest rate is not always the cheapest loan. To compare fairly, look at the total cost: all the interest you'll pay plus processing fees and other charges.
- Processing fee – often 0.5%–2% of the loan amount, sometimes with GST on top.
- Tenure – a longer tenure lowers the EMI but increases total interest a lot.
- Floating vs fixed rate – floating rates can rise or fall; fixed rates are usually higher at the start.
- Prepayment charges – check whether you can prepay without a penalty.
Once you've chosen, see how much more you can save with the loan prepayment calculator.