📖 Understanding Different Types of Loans

A loan is a financial agreement where you borrow money from a bank or NBFC and repay it over time with interest. Our Loan Calculator helps you understand the total cost of borrowing before you commit to any loan type.

Each loan type has different interest rates and tenure options. Personal loans are unsecured with higher rates (10.5%-18%), while home loans offer lowest rates (6.5%-9.5%) with tax benefits. Car loans finance vehicles with the car as collateral. Education loans come with a moratorium period for students. Gold loans provide quick cash against jewelry at low rates.

This calculator uses the simple interest formula to give you quick estimates. Simply select your loan type, enter the amount you need, the interest rate offered, and how long you want to repay. The calculator shows your total payment, total interest cost, and monthly installment.

For accurate calculations on reducing balance loans (like home and car loans), use our EMI Calculator. Always compare rates from multiple banks, check processing fees, and understand prepayment terms before signing any loan agreement.