Source: https://awesomecalcs.com/loan-comparison-calculator/2-lender-offers-lowest-emi-not-recommended
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: When the Lowest EMI Is Not the Best Deal

> A 2-offer comparison where the offer with the lower monthly EMI is not the recommended choice once total cost is calculated.

Interactive calculator: https://awesomecalcs.com/loan-comparison-calculator/2-lender-offers-lowest-emi-not-recommended

Keywords: lowest EMI not best deal, loan comparison EMI vs total cost

## Scenario inputs

```json
{
  "inputs": {
    "offers": [
      {
        "label": "Lower EMI offer",
        "loanAmount": 1500000,
        "annualInterestRate": 9,
        "tenureMonths": 84,
        "processingFeeType": "percent",
        "processingFeeValue": 2.5,
        "otherCharges": 8000
      },
      {
        "label": "Higher EMI offer",
        "loanAmount": 1500000,
        "annualInterestRate": 9.25,
        "tenureMonths": 72,
        "processingFeeType": "amount",
        "processingFeeValue": 5000,
        "otherCharges": 0
      }
    ]
  }
}
```

## Frequently asked questions

### Why would a shorter, higher-EMI loan cost less overall?

A shorter tenure means less time for interest to accrue, even at a slightly higher rate. Combined with a smaller fee, the higher-EMI, shorter-tenure offer can end up cheaper in total, even though it demands more from your monthly budget.