Free tool
True cost of your loan
What the loan really costs a year (APR)
9.87%
That is 0.87 points above the 9% rate you were quoted
- Monthly EMI
- ₹1,03,792
- You actually receive
- ₹49,00,000
- Total interest
- ₹12,27,507
- Fees and charges
- ₹1,00,000
- Total you pay back
- ₹63,27,507
An estimate for learning, not a loan offer. Your lender's Key Facts Statement shows the exact APR for your loan; ask for it before you sign.
How it is worked out
APR is the yearly rate at which the EMIs you pay equal the money you actually receive: the loan minus up-front fees and charges. This is the internal-rate-of-return method the RBI uses in its Key Facts Statement rules. A flat rate charges interest on the full loan for the whole tenure, so it is converted to its reducing-balance equivalent. Charges paid later in the loan, and GST on fees, are not included unless you add them above.
Source: Reserve Bank of India, Key Facts Statement (KFS) for Loans & Advances, 15 April 2024. From 1 October 2024, lenders must give a KFS with the APR, including all charges, for all new retail and MSME term loans. Read the RBI notification.
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