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MoneyClarityTech · Loans

Fee waived, or rate cut? Put the offers side by side.

A festive offer moves cost between the processing fee, the rate, the tenure and the add-ons. Enter up to three offers as the lender quoted them — this rebuilds each one into the same three numbers: what you get in hand, what you pay in total, and the annual percentage rate.

How long you expect to keep the loan

The cheaper offer

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Side by side

Cost is everything you pay over what reaches you — interest, fees, GST and insurance — over the months you keep the loan. The APR is the full-term rate with every charge folded in, the same measure a Key Facts Statement must show.

What the poster leaves out

The waiver is once, the rate is every month

A waived fee saves its amount on day one. A lower rate saves a little in every instalment for as long as you keep the loan. Over a long loan the second almost always wins; the waiver wins only for a short stay.

Deducted upfront still costs interest

When the fee or insurance is taken out of the disbursement, the EMI is still worked out on the full amount. You pay interest on money that never reached you, which is why short loans with upfront charges carry a much higher APR than their rate.

A flat rate is not the same unit

Flat interest is charged on the original amount for the whole tenure. 7.5% flat over five years works out to about 13.3% on a reducing balance. Compare the APR, never the rate printed on the poster.

The KFS is the document that binds

RBI requires a Key Facts Statement with the APR before you sign any retail loan, valid for at least three working days on loans of seven days or more. A charge that is not in it cannot be added later without your explicit consent.

Fixed rates can carry exit charges

Floating-rate loans to individuals carry no prepayment charges under RBI's 2026 directions. Fixed-rate loans are not covered — on those, closing early can cost a foreclosure fee this tool does not add.

Read with this: Festive loan offers, read line by line · Flat vs reducing rate · Spread Check

How to read this. Reducing-rate offers are scheduled as standard monthly EMIs. Flat-rate offers take interest on the original amount for the whole tenure, divided equally across the months. Fees and charges marked as deducted are taken out of what reaches you; insurance marked as added to the loan raises the amount you repay. GST on the fee is 18%. APR is the monthly internal rate of return on what reaches you against the instalments, multiplied by twelve, so it is comparable with the stated rate. Cost over a shorter period counts the instalments paid plus the outstanding at that month; on flat-rate loans the outstanding is taken at the loan's true reducing rate, and a lender's own closure formula may give back less. Prepayment or foreclosure charges are not included. Nothing you enter leaves your phone. Education only.