Borrowing costs · Updated 18 October 2026 · 6 min read
The interest rate tells you the price of the money. An annual percentage rate, or APR, is meant to fold in some of the compulsory charges so two loans are easier to compare. It is still a yearly figure. It does not replace a full repayment schedule.
Why two loans with the same rate can differ
Imagine two loans of ₹1,00,000 for one year, both advertised at 18% a year. One charges a ₹500 processing fee. The other charges 3% of the amount, which is ₹3,000, and GST may sit on top of that fee. The interest rate matches. The amount you pay does not.
APR is one way to express that difference. Lenders do not always calculate it in the same way, and a headline APR can still leave out a penalty that only applies if you pay late or close the loan early. Read the key fact statement, not only the advertisement.
Why this site says “Not disclosed”
APR is shown only when the brand publishes one. Inventing an APR would look more precise than the data is. The comparison shows “Not disclosed” when the record has no APR, and that cell is kept separate from the nominal rate.
You can still compare a published interest band, the fee, the tenure, and an estimated EMI when those figures are on the record. Ask the lender for the APR or the total cost of credit that applies to your own application.
Questions worth asking
- Is the rate on a reducing balance or a flat rate?
- What is the processing fee in rupees for the amount I want?
- Is GST charged on the fee, and is it included in the figure I was shown?
- What is the total amount I will pay if I repay on time?
- What changes if I repay early, or if I miss a date?
A lower interest rate with a high fee can cost more than a slightly higher rate with a small fee, especially on a short tenure. Run both through the EMI calculator and add the fee before you decide.
Written by Zup Loans editorial desk. Specialist review is still pending before any live publication.