Ask for the EMI, not the rate. The EMI cannot lie.
A flat rate is built to look smaller than a reducing rate on the very same loan. The one number that tells the truth is the one leaving your account every month.
01
Never compare a flat rate to a reducing rate. They are different languages. Rough translation, a flat rate is close to 1.8 times the real one. Flat 10 is a real 17 to 18.
02
Ask one thing. What is the EMI, and for how many months. Multiply, subtract the loan, and the real interest falls out with nowhere to hide.
03
The danger is not only the interest. Flat makes an expensive loan feel cheap, so you borrow more than you would have at the honest number. Cheap looking is the trap.
A flat rate bills you for money you handed back years ago. The rate on the poster is marketing. The EMI is the contract. Read the one that actually moves your money.
How lenders quote a rate to make it look smaller.
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