Even with a 0.1% difference in interest rates, the total repayment amount can differ by several hundred thousand yen depending on the loan amount and loan term. Don’t compare loans based only on the fee rate 2. Loan handling fees Loan handling fees are fees paid to the financial institution that handles a Flat 35 loan. Because each financial institution sets its own loan handling fees, even if all other conditions are the same, the difference can amount to several hundred thousand yen depending on which institution you choose. There are two ways to pay loan handling fees: a percentage-based type, in which a fixed percentage of the loan amount is paid, and a flat-fee type, in which a fixed amount is paid regardless of the loan amount. With the flat-fee type, it is common for the borrowing interest rate to be increased in addition to the lump-sum payment (the fixed fee) paid at the time of borrowing. Therefore, when comparing flat-fee loan handling fees, it is necessary to include the increase in repayment amount caused by the higher interest rate. This increase is affected not only by the loan amount but also by the loan term—the larger the loan amount and the longer the loan term, the greater the increase in total repayments.