DIY Loan Comparison Spreadsheet – Make One in Just 5 Minutes

Srishti is a 29-year-old freelance designer. She is planning to upgrade her laptop and home office setup. For that, she needs a personal loan of ₹3,00,000. She shortlisted three lenders to take loans from.

Each lender is offering a different interest rate, loan term, and processing fee to her. She was confused. Instead of making a rushed decision, she opened a simple spreadsheet, entered the details, and compared the options side by side.

This small 5-minute exercise helped her save over ₹25,000 in interest payments. If you are also in a similar situation to Srishti’s, then you can use Google Sheets or Excel to build your loan comparison sheet in minutes.

Why Use A Spreadsheet To Compare Loans?

• It will help you view all offers in one place.
   
• It will let you calculate the total cost beyond just EMIs.
  
  
• It will help you avoid confusion when lenders offer different terms.
  
  
• It will offer you more control while deciding between lenders.
  
  
• It will make future comparisons easier with saved templates.

Read More – How to Calculate EMI
 

Information You Will Need Before You Begin

If you want to build your spreadsheet, then you need to collect these details from your lenders:

• Loan amount (example: ₹3,00,000)
  
  
• Annual interest rate (example: 13.5%)
  
  
• Loan tenure in months (example: 36 months)
  
  
• Processing fee, if any (example: ₹1,500)
  
  
• Type of interest calculation (usually reducing balance)

How To Make A Loan Comparison Spreadsheet (Step By Step)?

Step 1: Open A New Excel Or Google Sheet

The first step for you is to label the top row of your sheet like this:

Step 2: Fill In The Loan Offers

Now, you need to input the details of loan offers from different lenders. Let’s look at an example:

Step 3: Use The EMI Formula In Excel Or Sheets

Now, to find out your EMI, you need to use the following formula:

=PMT(rate, number_of_periods, present_value, [future_value], [end_or_beginning])

Here’s an example for Lender A:

=PMT(13.5%/12, 36, 300000, 0, 0)

This gives an EMI of approximately ₹10,207. Now, you need to apply this formula for each lender.

Step 4: Calculate Total Repayment And Interest

Now, you need to add two more columns:

• Total Repayment = EMI × Tenure
• Total Interest = Total Repayment – Loan Amount – Processing Fee
  
  

Overall Loan Summary

Tips To Improve Your Spreadsheet

• You can improve your spreadsheet by highlighting the lowest EMI, shortest tenure, and least interest.
  
  
• You can add colour coding for easy viewing.
  
  
• To improve your spreadsheet, you can use dropdowns to test different tenure options (12 to 60 months).
  
  
• You must create a separate sheet for each loan type (home, car, business).

Also Read - How To Find The Bank Offering The Lowest EMI
 

What To Keep In Mind While Comparing Loans?

• You must not forget to look at total repayment and not just EMI.
  
  
• You must keep in mind that shorter tenure means less interest but you should not forget that it comes with higher EMI.
  
  
• You must confirm if interest is calculated on reducing balance.
  
  
• Never forget to look out for processing fees and pre-closure charges.

Final Thoughts

If you want to compare loans, then making your own loan comparison sheet is the best option for you. You will just need 5 minutes to make it. 

Using this, you can easily evaluate offers based on real numbers, not just promotional ads. Comparing your loan offers will help you in making an informed decision. 

Whether you are planning a renovation, funding education, or buying new equipment, it will help you in all situations.

You should not go with the first offer that looks easy. You can make a smart decision by comparing numbers.

FAQs

1. Can I download templates online?

Yes, free templates are available on multiple finance blogs.

2. What is the most important column in this comparison?

The total repayment amount gives the clearest picture.

3. Can I add prepayment charges in the sheet?

Yes, include them in a new column.

4. What if I want to compare 5 or more lenders?

Just add more rows to your sheet.

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About the Author

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?