Microfinance Loan Comparer (Pakistan)
Compare two microfinance loan offers side by side. Enter the loan amount, annual markup rate, term, processing fee and other charges for each offer, and the comparer shows monthly installment, total markup, total repayment and the cheaper option — using the flat-rate method common in microfinance.
Examples are generic and editable — type your own figures from the loan offer.
Loan A
Loan B
Enter both loan offers to see the side-by-side comparison.
How to use
- Load Example A and Example B, or type the figures from your own two loan offers.
- Enter loan amount, annual markup rate (flat), term in months, processing fee and insurance or other charges.
- The comparison updates instantly — monthly payment, total markup, total repayment and the cheaper option.
Important notes
- This comparer uses the flat-rate method common in microfinance. If your lender uses a reducing-balance rate, actual cost is lower.
- A longer term lowers the monthly installment but increases total markup — compare total repayment, not just the rate.
- Figures are estimates for comparison only. Get the total repayment in writing from the lender before signing.
Frequently asked questions
Flat-rate markup charges the annual rate on the FULL loan amount for the whole term. Total markup equals loan amount times annual rate times term in years, and the monthly installment equals (loan amount plus total markup plus fees) divided by the term in months.
A reducing-balance rate charges markup only on the outstanding balance, so the same nominal percentage costs much less in total. A flat rate of 20 percent costs roughly double what a reducing-balance rate of 20 percent costs. Always compare total repayment, not just the rate.
Processing fees, insurance, other charges and the loan term change the total repayment. A longer term also means more markup, so a lower monthly installment can hide a higher total cost.
Check total repayment in writing, the monthly installment against your income, processing and insurance fees, late-payment charges, and whether the rate is flat or reducing-balance. Never borrow more than you can repay.
Yes, it is free to use online with no signup.