EMI, the amount you actually receive after the processing fee, and the real annual cost (APR) of the loan.
Why the amount you receive matters
A processing fee, and tax on it, is usually deducted from the loan before it reaches your account, but you repay the full loan with interest. The calculator shows the amount you actually receive and the annual cost rate including the fee: the rate at which your EMIs would repay only what you received.
Amount received = loan − fee − tax on the fee
Annual cost rate
It is found by trial: the monthly rate at which the EMIs repay the amount received, multiplied by 12 — the same basis as the quoted rate, so the two can be compared. Insurance or other charges you did not enter are not in it.
Before you borrow
- Compare offers by EMI and total cost, not by rate alone.
- Check whether the loan can be prepaid and what that costs.
- Borrow only what the EMI comfortably fits in your monthly budget.
Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.