Published: 2026-10-05 · Reviewed: 2026-10-05
How to compare interest, fees and total loan cost
A low advertised rate is not enough to tell whether a loan is affordable. Compare the same amount and term, then look at every mandatory peso you will repay.
Keep the amount and term consistent
Compare products using the amount you need and similar repayment periods. A longer term can reduce the scheduled payment while increasing the total cost.
Separate interest from fees
List interest, processing charges and other mandatory costs individually. Then verify that they match the total amount payable shown in the final documents.
Check the period behind a rate
Daily, monthly and annual figures are not directly interchangeable without the underlying calculation. Use the rate published for the product and confirm the actual peso cost.
Review the payment schedule
Check due dates, number of payments, payment channels and what happens after a missed payment. A workable schedule is part of responsible borrowing.
Write down
- amount disbursed
- term
- interest basis
- fees
- total amount payable