Compare loan offers
Which bank is actually cheaper, fees included
Worked example
Using the default values, compare loan offers gives a bank a costs least of ₹52,36,939.
| Item | Value |
|---|---|
| Cheapest overall | Bank A |
| Its EMI | ₹21,696 |
| Lowest EMI on offer | ₹21,696 — the same offer |
| Total you would pay | ₹52,36,939 |
| Costliest offer | Bank B |
| Difference | ₹80,325 |
| Which is | 3.2% of the loan |
| Amount | ₹25,00,000 |
| Tenure | 240 months · 20 yr |
What you need
- Loan amount
- Tenure
- The offers
Questions
Why compare total cost rather than EMI?
EMI only reflects the rate and tenure. Fees are paid up front and never appear in it, so two loans with almost identical EMIs can differ by tens of thousands once processing, legal and valuation charges are counted.
What is the true rate with fees?
The interest rate that would produce the same total cost if the bank charged no fees at all. It lets you compare a low-rate high-fee offer against a high-rate no-fee one as a single number.
Can I negotiate the processing fee?
Usually yes, particularly if you have a competing sanction letter. Banks waive or halve it far more readily than they move the interest rate.
Should I always pick the lowest total?
Mostly, but not blindly. Service quality, how quickly the bank passes on rate cuts, and whether it allows free part-prepayment all matter over a twenty-year loan.
Important
The lowest EMI is not always the cheapest loan — a longer tenure or a large processing fee can make a small monthly saving cost more overall, which is why both the EMI difference and the total are shown. A bank quoting a fraction less but charging a large processing fee can cost more overall, which is why the true rate row folds every charge back into a single comparable percentage. Processing fees are usually 0.25% to 1% of the loan plus GST, and are often negotiable or waived entirely during festive offers — always ask. Watch for prepayment charges too: floating-rate home loans to individuals cannot carry them, but fixed-rate loans and most personal loans can.