Source: https://awesomecalcs.com/loan-comparison-calculator/2-lender-offers-different-amounts
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# Loan Comparison: 2 Lenders, Different Approved Amounts

> Comparing a lender that approves the full requested amount against one that approves less, both at similar rates.

Interactive calculator: https://awesomecalcs.com/loan-comparison-calculator/2-lender-offers-different-amounts

Keywords: compare loan offers different amounts, lender approved less than requested

## Scenario inputs

```json
{
  "inputs": {
    "offers": [
      {
        "label": "Full amount lender",
        "loanAmount": 3000000,
        "annualInterestRate": 9,
        "tenureMonths": 120,
        "processingFeeType": "amount",
        "processingFeeValue": 10000,
        "otherCharges": 0
      },
      {
        "label": "Partial amount lender",
        "loanAmount": 2500000,
        "annualInterestRate": 9,
        "tenureMonths": 120,
        "processingFeeType": "amount",
        "processingFeeValue": 10000,
        "otherCharges": 0
      }
    ]
  }
}
```

## How this is calculated

Compares 2-4 competing loan offers by computing each one's EMI, total interest, and total cost of loan (interest + processing fee + other one-time charges), then recommends whichever offer has the lowest total cost, not just the lowest rate or lowest EMI.

**Formula:** `Per offer: EMI = computeEMI(P, rate, n); totalInterest = EMI x n - P; processingFeeAmount = feeType === "percent" ? P x feeValue / 100 : feeValue; totalCostOfLoan = totalInterest + processingFeeAmount + otherCharges`

**Variables:**

- `P`: Loan amount for this offer, in INR (can differ between offers)
- `rate`: Annual interest rate for this offer, as a percentage
- `n`: Tenure for this offer, in months

Reference: Matches the total-cost-of-loan comparison methodology used by BankBazaar and Paisabazaar loan comparison tools.

## Assumptions

- Compares offers exactly as entered, including different loan amounts, tenures, or fee structures; it does not normalize amounts to a common baseline.
- Does not model prepayment, foreclosure charges, or rate changes over the tenure (e.g. floating-rate resets); it compares the offers as quoted today.

## Frequently asked questions

### Should I still compare offers if the approved amounts differ?

Yes, comparing the actual offers on the table is more useful than assuming you'd get the same amount everywhere. If one lender approves less, you may need to arrange the shortfall separately, which is worth factoring in alongside the total cost of loan.