Verify the Real Cost of an Indian Loan Offer
Independently verify the real cost of an Indian loan offer. Enter your loan terms and the figures from your sanction letter or Key Facts Statement (KFS). The tool recalculates the EMI, effective annual cost, fees, and floating-rate risk from first principles - letting you check the lender's numbers before you sign.
Summary
EMI reconciliation
Enter your lender's quoted EMI above to see the reconciliation.
Fees and disbursement
Effective annual cost and rate metrics
KFS / sanction letter consistency checks
Enter the lender-quoted APR and/or benchmark + spread above to see KFS consistency checks.
Floating-rate stress test
The stress test is computed in real time when inputs change. For fixed-rate loans (mode 0), results are shown for reference only.
Prepayment savings
Enter a monthly extra payment or lump sum above to see prepayment savings. Adjust inputs and the panel updates automatically.
Refinance analysis
Enter a lower target rate to see whether refinancing saves money. Computed in real time.
Amortisation schedule
| Month | Payment (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|
Questions to ask the lender
- Based on the figures entered, no major discrepancies were detected. Review each line item in the KFS and sanction letter before signing.
Offer comparison
This tool independently recalculates the figures entered. It provides a mathematical consistency check, not legal, tax, credit or lending advice. It does not determine whether a fee or prepayment charge is lawful, mandatory or negotiable.
What this calculator does not model
- Lender-specific daily-interest conventions (365-day vs 360-day basis)
- Future benchmark rate changes for floating-rate loans
- Borrower-specific credit eligibility, CIBIL score, or underwriting criteria
- Tax deductions (Section 80C principal, Section 24 interest, Section 80EEA additional)
- Government subsidies including PMAY (Pradhan Mantri Awas Yojana)
- Legal enforceability of any fee, charge, or prepayment penalty
- Credit approval decisions or lender underwriting criteria
- Quality, adequacy, or pricing of insurance coverage bundled with a loan
- NBFC vs bank regulatory differences beyond the stated rate and fees
Evidence, sources and editorial review
Verify the Real Cost of an Indian Loan Offer groups its evidence and methodology review here so sources, assumptions and responsibility can be checked together.
References & Authoritative Sources
- Reserve Bank of India — Key Facts Statement (KFS) for Loans and Advances · consulted April 15, 2024 · Circular DOR.STR.REC.13/13.03.00/2024-25 dated 15 April 2024. Mandates KFS disclosing APR, all charges, amortisation schedule and prepayment conditions before disbursal.
- Reserve Bank of India — Reset of Floating Interest Rate on EMI-based Personal Loans · consulted August 18, 2023 · Circular DOR.MCS.REC.32/01.01.003/2023-24 dated 18 August 2023. Requires lenders to communicate reset options and offer borrowers a choice of strategy.
- Reserve Bank of India — Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 · consulted January 1, 2025 · Directions governing prepayment charges on loans. Consult the RBI website for the current text.
Methodology & Review
EMI = P x r / (1 - (1+r)^-n), r = annualRate/100/12. Amount financed = principal + charges financed. Net amount received = amount disbursed (if stated) or principal minus upfront charges minus broken-period interest. Effective annual cost = ((1 + monthly IRR)^12 - 1) x 100, where monthly IRR is the rate that discounts all EMIs to the net amount received. Flat-rate equivalent = totalInterest / principal / (termMonths/12) x 100. Moratorium mode 1 capitalises interest; mode 2 is interest-only during the moratorium period. Stress test shifts the nominal annual rate by the stated basis-point shock and recomputes under the chosen strategy. Prepayment simulates extra monthly payments, one-time lump sums, annual extra EMIs and annual EMI step-ups applied to principal. Refinance compares future cost of the current loan from the chosen month against the cost of a new loan at a new rate on the outstanding balance. All values are independent estimates for consistency checking only.
Reviewed according to the CalcDomain Editorial Policy & Calculator Methodology. We document formulas, edge cases, sources, update dates, and correction paths for calculator pages.
Last updated
Update history
- · v1 — Initial India EMI Calculator: basic reducing-balance EMI in INR, amortisation schedule.
- · v2 — Upgraded to India Loan Offer Auditor: added fee reconciliation, effective annual cost (IRR-based), floating-rate stress test, prepayment planner, refinance comparison, three-offer comparison, KFS consistency checks, and RBI citations.
Frequently Asked Questions
What is the difference between the nominal rate and the effective annual cost?
The nominal annual rate is the stated interest rate on which the EMI formula is applied. The effective annual cost (EAC) is higher whenever compulsory fees (processing fee, GST, insurance, documentation) are included in the loan cost - because you pay interest on them if they are financed, or receive less money upfront if they are deducted. The EAC is the annualised rate that equates the present value of all your payments to the net amount you actually receive.
What is a KFS and why does it matter?
The Key Facts Statement (KFS) is a standardised one-page summary that Indian lenders are required to provide before loan disbursal under RBI circular DOR.STR.REC.13/13.03.00/2024-25 (15 April 2024). It must disclose the annual percentage rate, all charges, the amortisation schedule, and conditions for prepayment. This tool helps you cross-check whether the figures in the KFS are internally consistent.
How does this tool handle a moratorium period?
A moratorium is a period at the start of the loan during which full EMI payments are not required. In a payment-holiday moratorium (mode 1), interest accrues and is added to the principal each month, increasing the amount on which subsequent EMIs are computed. In an interest-only moratorium (mode 2), you pay only the interest each month and the principal stays constant. After the moratorium, the EMI is recomputed on the outstanding balance over the remaining months.
What does the floating-rate stress test show?
It applies a rate shock (e.g. +100 basis points = +1 percentage point) to the current nominal annual rate and shows the new EMI (if tenure is fixed) or the new repayment period (if EMI is fixed). This is an independent estimate based on the inputs you enter. Actual rate changes depend on the lender's benchmark reset schedule, which is governed by RBI guidelines for floating-rate personal loans.
Does this tool determine whether a fee or prepayment charge is lawful?
No. This tool performs a mathematical consistency check only. It does not determine whether any fee, prepayment charge, or lending practice is lawful, mandatory, waivable, or negotiable under RBI regulations, consumer protection law, or your specific loan contract. For legal questions, consult a qualified professional or the RBI's grievance redressal process.
What costs does this tool not model?
This tool does not model lender-specific daily-interest conventions (some lenders use a 365-day basis, others 360-day), future benchmark changes for floating-rate loans, borrower-specific credit eligibility, tax deductions, government subsidies, legal enforceability of any charge, credit approval decisions, lender underwriting criteria, or the quality of insurance coverage bundled with a loan.
How should I read the questions to ask the lender section?
These questions are generated automatically from the inputs and calculated outputs - for example, if the quoted EMI differs from the independent estimate by more than a small threshold, a question is generated asking the lender to explain the difference. None of the questions contain legal conclusions. They are starting points for informed discussion with your lender before signing.