Compare two loan offers and see total cost difference
Most people accept the first loan offer they get approved for. That's leaving money on the table. The difference between a 9.5% and 11% home loan on โน50 lakhs over 20 years isn't small โ it's lakhs of rupees in extra interest. This calculator puts multiple offers side by side so you can see exactly what each one costs over the full tenure.
The advertised interest rate is only one part of the picture. The real cost includes processing fees, prepayment penalty clauses, insurance premiums bundled in, and whether the rate is fixed or floating. Two loans at the same rate can have very different total costs depending on tenure and fee structure.
Fixed rate loans lock your interest rate for the entire tenure. Floating rate loans are linked to an external benchmark (RBI repo rate) and change when that benchmark moves. Fixed rates are typically 1โ2% higher than floating at the time of taking the loan. For 20+ year tenures, floating rate loans have historically been cheaper in India.
If you need a large amount and own property, Loan Against Property (LAP) typically offers 9โ12% rates versus personal loans at 13โ22%. For large amounts over longer tenures, LAP almost always makes more financial sense. To dig into individual loan options, use our EMI calculator for any single loan's monthly payment and amortisation breakdown.
On โน50 lakh home loan over 20 years, the difference between 9% and 10% is roughly โน6โ7 lakh in total extra interest. On โน1 crore, that's โน12โ14 lakh. Even 0.5% matters significantly on large loans over long tenures.
Lower EMI means longer tenure means more total interest. If the higher EMI is comfortable, shorter tenure almost always wins from a total cost perspective. The comparison calculator shows the total interest difference between tenures directly.
MCLR is an older benchmark used by banks. Newer loans since 2019 are linked to EBLR (repo-linked). If your loan is on MCLR, rate changes happen less frequently than EBLR loans. New borrowers are generally better served by EBLR-linked loans for faster RBI rate cut transmission.
Not necessarily a lower rate, but a co-applicant with a good credit score can improve approval chances and loan amount sanctioned. Some banks offer a small rate discount for women co-applicants on home loans.