Quick Summary: Personal Loan True Cost

The true cost of a personal loan (APR) includes the stated interest rate plus processing fees (usually 0.5-4%) and 18% GST on those fees. A 12% flat rate loan is actually equivalent to a 21.2% reducing balance loan for a 3-year tenure, making it significantly more expensive than it appears.

How to use the Personal Loan True Cost

  1. Enter Stated Rate

    Input the interest rate quoted by the bank (Flat or Reducing).

  2. Add Processing Fees

    Input the upfront charges and GST deducted from the loan amount.

  3. Review Effective APR

    Calculate the real annualized cost of borrowing to compare with other lenders.

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Regulatory Disclaimer

Last verified May 2026

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.