Why one should compare loans? Because through this you come to know about the different types of companies offering loans and their terms and conditions. Most of the banks will ask for photo proof, residential proof, salary proof and income tax return certificate before granting the loan amount. However some companies are lenient with these papers while some are very stringent for example some companies need only 1 year of IT return for granting home loan while some need 3 years of IT return.


It is only when you compare loans that you come to know which company is asking for what papers. Also through this you come to know the interest charged by different banks and financial institutes. There is not lot of difference in the interest charged but then every cent counts. So even a difference of 0.25% will affect the amount you have to pay back.