Frequently Asked Questions About Loans and Loan Assistance

Each lender sets its own rate based on the loan type, your credit score, your income or business performance, the amount, the tenure, any security offered and its pricing policy at the time. That is why two people can be offered different rates for the same loan.

We do not lend or set rates, so we cannot promise the lowest one. We compare offers from all major banks and loan providers for your profile and help you apply where it fits best, which helps you find competitive terms.

EMI stands for equated monthly instalment: the fixed amount you pay the lender every month until the loan is repaid. Each EMI covers that month’s interest and repays a part of the loan amount.

Your EMI depends on the loan amount, the interest rate and the tenure. Lenders use the formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate and n the number of months. The lender’s final schedule can differ slightly.

Usually, yes. Depending on the loan and the lender, you may pay a processing fee, GST on fees, legal and valuation fees for property loans, insurance where it applies, and charges for late payment, a bounced EMI or early closure. The lender lists them in its Key Facts Statement, so compare that, not just the rate.

Many lenders allow a part payment or full foreclosure, sometimes after a minimum number of EMIs. For floating-rate loans taken by individuals for personal use, RBI rules do not allow prepayment charges. Fixed-rate and business loans may carry a charge, so check your loan agreement.

No, it usually raises it. A longer tenure lowers your monthly EMI, but you pay interest for more months, so the total interest goes up. For example, ₹10 lakh at 10.75% costs about ₹2.97 lakh in interest over 5 years and about ₹6.36 lakh over 10 years.