[mail4ajo]

The simplest thing to do is to negotiate on the EMI per lakh, cause its very complex for us to understand what and how the interest is calculated. There is also something called "rests". Some banks charge on monthly rest, others yearly, daily diminishing, monthly dimishing etc.

All these terms and magic calculations together make buyers go nuts and end up deciding on something unfeasible. When I did my car purchase, I took a sheet of paper and wrote down the following headings:

Bank name
interest rate
EMI/lakh
max term offered
advance EMI - Yes or No
processing charges
preclosure damage
lump sum payment towards pricinpal - Yes or No
Diminishing time - monthly/yearly
Documents required
Processing time

Once I had all this on paper, I called up each banker and got the details. Then it was easy to choose my bank loan. I know this is tedious, but effective on choosing the best deal.