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Loan Comparison Calculator

Compare two loan offers side by side to find the better deal

Loan A (Bank 1)
Loan B (Bank 2)
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What is Loan Comparison?

Free loan comparison tool. Compare EMI, total interest, and total payment of two loan offers side by side. Find out which loan is cheaper. India-specific financial calculators built for the Indian tax system, RBI guidelines, and Indian banking rates. TekPulse's Loan Comparison is completely free — no signup, no ads in results, and no data stored on our servers.

How to Use Loan Comparison Online

  1. Enter the loan amount, interest rate, and tenure for Loan A
  2. Enter the corresponding details for Loan B in the second column
  3. View a side-by-side comparison of EMI, total interest, and total payment for both loans
  4. The better deal is highlighted — the loan with lower total cost wins
  5. Use the interest type toggle to compare reducing balance vs flat rate loans

Loan Comparison Formula & Calculation

Total Cost = (EMI × n) + Processing Fee + Insurance | Effective Rate accounts for all fees

Example: ₹10L personal loan, 5 years.
Loan A: 10% rate, EMI = ₹21,247, Total = ₹12,74,820, Processing fee 1% = ₹10,000 → Effective cost = ₹12,84,820.
Loan B: 10.5% rate, EMI = ₹21,494, Total = ₹12,89,640, No processing fee → Effective cost = ₹12,89,640.
Conclusion: Loan A is cheaper despite same principal even though Loan B's rate sounds only 0.5% higher.

Key Factors That Affect Your Result

  1. Processing fee — Ranges from 0% to 3% of loan amount. On a ₹30L home loan, a 1% difference in fee = ₹30,000 upfront. Always factor this into total cost comparison, not just the interest rate.
  2. Prepayment charges — RBI mandates no prepayment penalty on floating rate home loans. Personal and car loans may charge 2–5% of outstanding principal. If you plan to prepay, choose loans with nil prepayment charges.
  3. Fixed vs floating rate — Fixed rate gives EMI certainty for 2–5 years but is typically 0.5–1% higher. Floating rate (linked to repo rate) can go down in RBI rate-cut cycles — beneficial for long-tenure home loans.
  4. Tenor vs EMI tradeoff — On a ₹50L loan at 9%: 20-year EMI = ₹44,986 (total interest = ₹57.9L) vs 15-year EMI = ₹50,714 (total interest = ₹41.3L). Stretching tenure costs ₹16.6L extra in interest.

Why Use TekPulse Loan Comparison?

Runs Entirely in Your Browser
Uses the standard reducing-balance EMI formula — your loan details are never sent to our servers
Two Loans Side by Side
Compare EMI, total interest, processing fees, and total cost for two offers at once
Clear Verdict
States plainly which loan costs less overall and by how much
Instant Results
The comparison table updates as you edit either loan's details

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Frequently Asked Questions

Compare: interest rate (APR), total interest paid over the tenure, processing fees, prepayment penalty, EMI amount, and tenure. A lower EMI is not always the best deal if the total cost is higher.

Flat rate charges interest on the original principal throughout the tenure. Reducing balance (diminishing balance) charges interest only on the outstanding principal — which reduces each month. Reducing balance is always cheaper.

Processing fees (typically 0.5–2% of the loan amount) are a one-time charge added to your loan cost. Always add it to the total cost comparison. A lower rate loan with high fees may cost more overall.

Some lenders charge a fee (1–5% of outstanding principal) if you repay the loan before the tenure ends. RBI regulations prohibit prepayment penalties on floating-rate loans for individuals.

Lower EMI means longer tenure and more total interest paid. Shorter tenure means higher EMI but significantly less total interest. If you can afford it, always choose the shortest feasible tenure.

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