Question 1

What types of loans can I compare on FinWiz24?

Accepted Answer

You can compare personal loans, home loans, car loans, and other retail credit products listed on FinWiz24. Use the side-by-side table to review interest rate, loan amount, tenure, processing fee, and prepayment terms before you apply to any RBI-regulated lender.

Question 2

What is the difference between fixed and floating interest rates?

Accepted Answer

A fixed rate stays constant for the agreed period, making EMIs predictable. A floating rate moves with benchmarks such as RBI repo-linked lending rate (RLLR) or MCLR — EMIs can rise or fall. Compare both the starting rate and how often the lender resets floating loans.

Question 3

What is a processing fee on a loan?

Accepted Answer

Processing fee is an upfront charge for loan application, credit assessment, and documentation — usually 0.5%–2% of the sanctioned amount plus GST. A lower headline interest rate with a high processing fee can be more expensive than a slightly higher rate with zero processing fee.

Question 4

What is prepayment penalty on loans in India?

Accepted Answer

RBI norms restrict prepayment charges on floating-rate retail loans from banks, but fixed-rate and NBFC products may still levy penalties. Compare prepayment terms if you expect bonuses, property sale proceeds, or early closure — flexible prepayment can save substantial interest.

Question 5

How should I choose loan tenure?

Accepted Answer

Longer tenure lowers EMI but increases total interest paid. Shorter tenure raises EMI but reduces interest cost. Use an EMI calculator with your monthly surplus, then compare lenders at the tenure that keeps EMIs comfortable without stretching debt unnecessarily.

Question 6

How do RBI guidelines affect loan interest rates?

Accepted Answer

RBI sets the policy repo rate, which influences banks' external benchmark-linked lending rates. Lenders must link most retail floating loans to transparent benchmarks. When comparing loans, check whether the rate is linked to RLLR, MCLR, or another published benchmark and the spread above it.

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