Personal loan is one of the best means to help you meet any immediate financial needs, such as wedding, home renovation or repair, debt consolidation, vacation, medical expenses, and so on. However, apart from interest rate a personal loan comes with a personal loan processing fee, which is often non-refundable. A personal loan involves various other fees and charges in addition to interest rate and processing fee which should be kept in mind before applying for the loan. Read on to know about personal loan processing fee and all other fees and charges associated with a personal loan to ascertain the affordability and overall cost of the loan.
|Banks||Processing Fee||Prepayment Charges||Late Payment Charges|
|HDFC Bank Personal Loan||HDFC personal loan processing fee is up to Rs. 4,999||2% to 4%||18% p.a + applicable taxes|
|IDFC First Personal Loan||Up to 3.5%||Up to 5%||Up to 2% p.m. or up to Rs. 300, whichever is higher|
|Bajaj Finserv Personal Loan||Up to 3.93%||Up to 4.72%||3.50% p.m|
|Kotak Mahindra Bank Personal Loan||Up to 3% + applicable taxes||Up to 4% + GST||3% p.m|
|ICICI Bank Personal Loan||Up to 2.50% + applicable taxes||Up to 3% + GST||24% p.a|
|Yes Bank Personal Loan||Yes Bank personal loan processing fee is up to 2% + applicable taxes||Up to 4% + applicable taxes||24% p.a|
|Tata Capital Personal Loan||Up to 3% + GST||Up to 6.5% + GST||3% p.m. + GST|
|SBI Personal Loan||SBI personal loan processing fee is up to 1.50% + GST||Up to 3% + GST||2% p.m|
Following are the different fees and charges related to personal loan which are common to most lenders:
Personal Loan Interest Rates offered by banks and other financial institutions are mainly decided by the borrower’s credit score, monthly income, age, employment status, and location. You can easily compare the latest interest rates of various private and public sector banks, non-banking financial companies (NBFCs), Small Finance Banks, and Micro Finance Institutions online on MyMoneyMantra. At present, personal loan interest rates vary between 9.30% and 24% per annum.
Lenders bear some cost related to administration at the time of processing a personal loan. To cover this cost they charge a processing fee. The processing charges for personal loan may include a fixed percentage of the sanctioned loan amount, documentation charges, verification charges, and applicable GST and other taxes.
Here are processing charges of some top lenders:
There are some ways to get zero processing fee personal loans. Some banks offer personal loan without processing fee for specific customer segments (such as defence personnel, pensioners, government employees, women, etc.). You can also avail of instant online loan without processing fee or ask your bank for no processing fee personal loan offers. You can also look out for seasonal offers wherein some lenders offer 0 processing fee personal loan schemes.
In most cases, processing charges for personal loans are non-refundable. However, in some cases, lenders may split the total processing fee into two parts, i.e. an upfront login fee and a balance processing fee which is payable at the time of sanction or disbursement. The upfront fee is non-refundable in such cases whereas balance processing fee is paid on;y after the loan amount is sanctioned. To get the most benefits of the loan you can apply for personal loan without processing fee.
Foreclosure charges are applied by the loan providers when the borrower wishes to foreclose or prepay the remaining loan balance in full before the repayment tenure ends. These charges usually vary from 2% to 6.5% of the amount prepaid plus applicable GST.
When the loan EMI bounces, the borrower has to pay an EMI bounce penalty which is usually 2% per month of the bounced payment.
At present, you can get without processing fee personal loans from Canara Bank. The bank is running festival offer, under which you can get instant loan without processing fee.