Question 1

How do I compare two loan offers?

Accepted Answer

Compare loans on: effective interest rate (not just advertised rate), total interest paid over the full tenure, processing fees, prepayment penalties, and flexibility of tenure. Our calculator shows side-by-side total cost comparison.

Question 2

Is a lower EMI always better?

Accepted Answer

Not necessarily. A lower EMI often means a longer tenure, which increases total interest paid significantly. For example, a ₹50 lakh home loan at 9%: 20-year tenure costs ₹58L in interest, while 30-year tenure costs ₹95L.

Question 3

What is the difference between flat and reducing rate?

Accepted Answer

Flat rate charges interest on the original principal throughout, while reducing rate charges interest only on the outstanding balance. A 10% flat rate equals roughly 18-19% reducing rate. Always compare using the reducing balance rate.

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