Loan Comparison

Loan Comparison Calculator
Loan Comparison Calculator
Loan Option 1
Loan Option 2

Here’s a simple guide on how to use the Loan Comparison Calculator I provided:


Step-by-Step Instructions:

  1. Enter Loan Details:
  • Loan Amount (₹): Enter the total amount you want to borrow (e.g., ₹10,00,000 for a home loan).
  • Loan Term (Years): Enter the repayment period (e.g., 20 years).
  1. Enter Loan Options:
  • Loan Option 1:
    • Interest Rate 1 (%): Enter the annual interest rate for the first loan (e.g., 8.5%).
    • Fees/Charges (₹): Add any one-time fees (e.g., processing fee of ₹5,000).
  • Loan Option 2:
    • Interest Rate 2 (%): Enter the second loan’s interest rate (e.g., 7.9%).
    • Fees/Charges (₹): Add fees if applicable (e.g., ₹3,000).
  1. Click “Compare Loans”:
  • The calculator will compute and display:
    • Monthly EMI for both options.
    • Total Interest payable.
    • Total Cost (loan amount + interest + fees).
    • Better Option (which loan saves you money).
    • Savings compared to the costlier option.

Example:

  • Loan Amount: ₹10,00,000
  • Loan Term: 10 years
  • Option 1: 8.5% interest + ₹5,000 fees
  • Option 2: 7.9% interest + ₹3,000 fees

Result:

  • Option 1 EMI: ₹12,398 | Total Cost: ₹14,87,760
  • Option 2 EMI: ₹12,078 | Total Cost: ₹14,49,360
  • Better Option: Option 2 (saves ₹38,400).

Key Notes:

  • Lower interest rates usually mean lower EMIs, but compare total cost (including fees).
  • Use this to negotiate with banks or pick between personal loans, home loans, etc.
  • The calculator assumes fixed interest rates (for floating rates, results may vary).