Total Loan Cost

The total loan cost shows the real price of borrowing, not only the interest rate. It can include contract fees, administration costs, late payment charges and the effect of a longer repayment period.

What to compare first

Start with the total amount you need, the repayment period, the monthly payment and all fees that can affect the final cost. A useful comparison uses the same loan amount and the same repayment period, because a lower monthly payment can sometimes hide a higher total cost.

Affordability matters

A loan can look affordable monthly while still being expensive overall. Leave room for regular bills, unexpected expenses and delayed income. If the repayment depends on taking another loan later, the risk is already too high and a smaller amount or a different solution should be considered.

Before you apply

Read the contract terms, late payment rules, early repayment options and any additional fees before submitting an application. Keep screenshots or notes from the comparison so that the final offer can be checked against what you expected.

Compare the total amount repayable before you compare marketing promises.