Source: https://awesomecalcs.com/loan-comparison-calculator/4-lender-offers-1000000
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: 4 Lenders, 10 Lakh Loan

> A maximal 4-offer comparison on a 10 lakh loan across a range of rates and fee structures.

Interactive calculator: https://awesomecalcs.com/loan-comparison-calculator/4-lender-offers-1000000

Keywords: compare 4 loan offers, loan comparison 10 lakh

## Scenario inputs

```json
{
  "inputs": {
    "offers": [
      {
        "label": "Lender A",
        "loanAmount": 1000000,
        "annualInterestRate": 11,
        "tenureMonths": 36,
        "processingFeeType": "amount",
        "processingFeeValue": 15000,
        "otherCharges": 0
      },
      {
        "label": "Lender B",
        "loanAmount": 1000000,
        "annualInterestRate": 10.5,
        "tenureMonths": 36,
        "processingFeeType": "amount",
        "processingFeeValue": 10000,
        "otherCharges": 0
      },
      {
        "label": "Lender C",
        "loanAmount": 1000000,
        "annualInterestRate": 10,
        "tenureMonths": 36,
        "processingFeeType": "amount",
        "processingFeeValue": 25000,
        "otherCharges": 5000
      },
      {
        "label": "Lender D",
        "loanAmount": 1000000,
        "annualInterestRate": 12,
        "tenureMonths": 36,
        "processingFeeType": "amount",
        "processingFeeValue": 0,
        "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

### Is it worth collecting 4 loan offers before deciding?

For a meaningful loan amount, yes: even a handful of quotes from different banks and NBFCs often reveals a wide spread in total cost, well beyond what the advertised rates alone would suggest.