Loan Comparison Tool
Compare interest rates, tenures, and EMIs of two different loans to choose the best option.
Comparison Result
| Scenario | Monthly EMI | Total Interest | Total Payment | Difference (Interest) |
|---|---|---|---|---|
| Loan A | ₹ 43,391 | ₹ 54,13,879 | ₹ 1,04,13,879 | - |
| Loan B | ₹ 44,986 | ₹ 57,96,711 | ₹ 1,07,96,711 | +₹ 3,82,833 |
What is a Loan Comparison Tool?
A Loan Comparison Tool allows you to evaluate two different loan offers side-by-side. By entering the loan amount, interest rate, and tenure for both options, you can instantly see the difference in EMI and Total Interest Payable. This is vital when choosing between banks or deciding between a shorter vs longer tenure.
How It Works
The calculator computes the EMI and Total Payment for both Loan A and Loan B independently and then highlights the savings or extra cost associated with each option.
Difference = Total Payment (Loan A) - Total Payment (Loan B)
Example Calculation
Scenario
Loan A: 8.5% for 20 years. Loan B: 9% for 20 years. (Amount ₹50L)
- 1.Loan A EMI = ₹43,391 | Total Interest = ₹54.13 Lakhs
- 2.Loan B EMI = ₹44,986 | Total Interest = ₹57.96 Lakhs
- 3.Difference: Loan A saves you ₹3.83 Lakhs over 20 years.
Why This Tool is Useful
- ✓Helps you choose the cheapest loan offer.
- ✓Shows the long-term cost of a slightly higher interest rate.
- ✓Helps decide whether to switch your loan (Balance Transfer).
- ✓Compares different tenure options (e.g., 15 years vs 20 years).
- ✓Simplifies complex financial decision making.
Tips & Comparison
- •Look at Total Cost: Don't just look at the EMI difference. A lower EMI might mean a longer tenure and much higher total interest.
- •Negotiate: Use the comparison data to negotiate a better rate with your lender.
- •Processing Fees: Remember to factor in processing fees and other charges when comparing loans.
- •Fixed vs Floating: Compare fixed rate loans with floating rate loans to see the cost of stability.