Loan Details + All Fees
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Full Cost Breakdown
Common questions about a loan's true cost
Why is my true APR higher than the advertised interest rate?
The interest rate only covers the interest charged on the principal. Your true APR (annual percentage rate) also folds in the processing fee, GST on that fee, any insurance premium bundled in, and other one-time charges — spread across the loan term. That's why a loan advertised at 11% can have a true cost closer to 12-13% once everything is counted.
Is GST charged on the entire loan or just the fee?
Only on the processing fee and other service charges, not on the principal or interest itself. At the standard 18% GST rate, a ₹5,000 processing fee actually costs you ₹5,900 upfront. It's a small amount on its own but adds up when comparing offers with different fee structures.
Should I take the optional loan insurance a bank offers?
It depends on your situation, not the bank's pitch. Loan insurance (sometimes bundled as a "credit shield") pays off the loan if you lose your job or pass away, which can be genuinely useful, especially for a sole earner. But it's usually optional even when presented as default-checked, and you can often get equivalent term cover cheaper outside the loan bundle. Read the fine print before assuming it's compulsory.
What hidden charges should I specifically ask about?
Beyond processing fee and GST, ask about prepayment/foreclosure charges, late payment penalties, cheque bounce charges, loan cancellation fees, and stamp duty (relevant for larger secured loans). None of these show up in the headline interest rate, but all of them affect what you actually pay over the life of the loan.
How do I compare two loan offers with different fee structures fairly?
Compare the true APR, not the advertised rate — that's exactly what this calculator is for. A loan with a slightly higher rate but no processing fee can genuinely cost less than one with a lower rate and a 2% fee, depending on your loan amount and tenure. Run both offers through the calculator above rather than eyeballing the headline numbers.