About apr calculator
The annual percentage rate (APR) shows the real yearly cost of a loan after fees are included, so you can compare offers fairly.
Why APR beats the stated rate
A loan at 10% with a 3% processing fee costs more than 10%. APR spreads the fee across the term.
Comparing
Compare APRs of loans with the same tenure and loan amount.
A worked example
A loan of ₹5 lakh at 10 percent for 3 years has an EMI of about ₹16,134. If the lender deducts a 2 percent fee (₹10,000) upfront, you receive ₹4.9 lakh but still repay the same EMIs. The effective annual rate rises to about 11.4 percent.
Compare like with like
Compare loans using the same tenure and amount. Ask for the full list of fees, including insurance that may be bundled with the loan.
