1. Put offers on the same basis
Compare the same required loan amount and a comparable tenure. Otherwise EMI numbers do not answer which loan is cheaper because one offer may simply stretch repayment longer.
Tip: Compare like with like first.
2. Compare APR, net disbursal and total repayment
Write down nominal rate, APR, processing fee, net cash received, EMI and total repayment. One table removes much of the marketing noise.
Tip: Use the KFS and sanction letter, not an advertisement.
3. Compare flexibility and rate risk
Check fixed or floating structure, benchmark, reset terms, part-prepayment, foreclosure and switching rules. Flexibility matters if you expect income or rates to change.
Note: Prepayment rules differ by product and current regulation.
4. Verify the lender and servicing quality
Check the legal lender, repayment channels, grievance process, collateral-release procedure and document quality.
Tip: Cheap credit from an opaque lender is not a good deal.
5. Quick check
Loan A has a lower EMI but two more years of tenure. What should you do?
Answer: B - Lower EMI can simply come from a longer and more expensive tenure.