Personal Loan True APR
How to Compare Two Personal Loan Offers
Compare two personal-loan offers using equal loan needs, net cash received, APR, total cost, prepayment terms and EMI affordability.
Last reviewed: 16 July 2026
Direct answer
What should be compared across two personal-loan offers?
Compare net cash received, effective APR, total repayment, EMI, charge schedule and prepayment terms using the same borrowing need and tenure. A lower EMI can simply reflect a longer and more expensive loan.
Worked example
Run Offer A and Offer B separately, save each APR and total cost, then check the KFS and foreclosure clauses before choosing.
What to check
- Normalise amount and tenure.
- Include all attributable charges.
- Read prepayment, late-fee and insurance terms.
How the calculator approaches it
- 1.Calculate EMI from sanctioned principal, reducing rate and tenure.
- 2.Subtract attributable upfront charges and advance EMIs from the cash received.
- 3.Solve the monthly internal rate that equates net cash with later repayments.
- 4.Annualise the result and compare it with the lender Key Facts Statement.
Important limitation
Dates, broken-period interest, rounding and charge classification can change APR. The lender Key Facts Statement is the offer-specific disclosure to verify.
Primary sources
Related questions
FAQs
What should be compared across two personal-loan offers?
Compare net cash received, effective APR, total repayment, EMI, charge schedule and prepayment terms using the same borrowing need and tenure. A lower EMI can simply reflect a longer and more expensive loan.
Which calculator should I use for this question?
Use RupeeKit's Personal Loan True APR Calculator India and replace the example with your own current figures.
RupeeKit provides educational estimates only. This page is not personalised financial, investment, tax, legal or lending advice. Verify current rules, product documents and your own facts before acting.