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Compare loan offers
Put up to three sanction offers side by side with their fees included. The cheapest loan is often not the one with the smallest EMI.
Offer A
20 years
Offer B
20 years
Offer C
15 years
Cheapest overall
Offer C
Total cost ₹63.60 L
Lowest EMI
Offer B
EMI ₹30,153
| Offer | EMI | Total interest | Charges | Total cost |
|---|---|---|---|---|
| Offer A | ₹30,707 | ₹38,69,658 | ₹13,000 | ₹73,82,658 |
| Offer B | ₹30,153 | ₹37,36,638 | ₹83,000 | ₹73,19,638 |
| Offer Ccheapest | ₹35,291 | ₹28,52,456 | ₹8,000 | ₹63,60,456 |
Why the lowest EMI is not the cheapest loan
The EMI depends as much on the tenure as on the rate. Stretching a loan from 15 to 20 years lowers the instalment noticeably, but adds five more years of interest — often several lakh rupees on a home loan.
Charges matter too. A lender offering 0.25% less interest but charging a large processing fee and a bundled insurance premium can end up costing more, especially on shorter tenures where there is less interest to save.
Use the total repayment cost column as the deciding number, then check that the EMI of your chosen offer is comfortable alongside your other commitments.
A worked Indian example
Offer A: ₹35,00,000 at 8.65% for 240 months, ₹13,000 of charges. Offer B: the same amount at 8.40% for 240 months but ₹83,000 of charges including insurance.
The rate gap saves roughly ₹1.2 lakh of interest over 20 years, so B still wins here — but if the tenure were 120 months instead, the smaller interest saving would no longer cover B's charges and A would be the cheaper loan.
Limitations
- Charges are treated as upfront costs, not financed, and are not added to the principal.
- Floating rates may move differently at each lender; all offers are assumed fixed here.
- Tax benefits, subsidy schemes and prepayment penalties are not part of the comparison.
- Service quality, disbursal speed and prepayment flexibility are not captured by cost alone.
Frequently asked questions
- Is the lowest EMI always the cheapest loan?
- No. A lower EMI usually means a longer tenure, which means more months of interest and a higher total cost. Compare total repayment, not the monthly figure alone.
- Which charges should I include?
- The processing fee, any bundled insurance premium, and other upfront charges such as documentation, legal, valuation or stamping. GST on fees should be added to the charge you enter.
- Should I compare offers over the same tenure?
- For a like-for-like cost comparison, yes. If the tenures differ, judge them on total repayment cost and check whether the higher EMI is comfortable for you.
- What if one lender quotes a flat rate?
- Flat-rate quotes are not comparable to reducing-balance rates and always cost more than they look. Ask the lender for the reducing-balance rate or the total interest amount, then enter that here.
- Does a lower rate always win?
- Usually, but a large processing fee or bundled insurance can erase a small rate advantage on a short tenure. The total cost column settles it.
Last reviewed: 1 September 2026
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.