Personal Loan Processing Fees and Charges
When you apply for a personal loan, a one-time, non-refundable processing fee is charged for application processing, verification, documentation and loan setup. The applicable fee is usually deducted at the time of disbursal, so the amount credited to your bank account may be lower than the approved loan amount*. The processing fee can vary based on factors such as the loan amount, repayment tenure, application channel and credit profile. You can review the applicable fees and charges before accepting the loan offer.
*Indicative and subject to confirmation. The exact fee is shown in your sanction letter before you accept the offer.
| Fee Type | Indicative Charge* |
| Processing Fee | Up to 4% of the loan amount plus GST* |
Personal Loan Pre-closure & Part-Prepayment Charges
If you have extra funds available, you may choose to part-prepay your personal loan by paying an amount over and above the regular EMI. This reduces the outstanding principal and may lower the interest payable over the remaining tenure. Full pre-closure or foreclosure means repaying the entire outstanding loan before the scheduled end of the tenure and closing the loan account. Personal loan pre-closure and prepayment charges vary by lender policy, loan type and applicable regulations. Any pre-closure charges for a personal loan, along with the minimum lock-in period, if applicable, will be disclosed in the loan agreement and the applicable fees and charges schedule.
Always check your loan agreement for the exact terms that apply to your loan.
| Charge Type | Indicative Charge* |
| Part-Prepayment Charges | 4% of the amount prepaid* |
| Full Preclosure / Foreclosure Charges | 4% of the outstanding prinicipal* |
Other Applicable Fees & Charges on Personal Loan
Besides the processing fee and any prepayment charge, a personal loan may attract a few service charges during its tenure. Most of these apply only in specific situations, such as a missed EMI or a request for a duplicate document, so you can avoid many of them by repaying on time. The table below lists the charges that may apply.
Knowing these charges in advance helps you plan your repayment and avoid unnecessary costs.
| Charge Type | Details & Applied Rates |
| Interest rate (p.a.) | Starting at 10.25%, up to 18% |
| Processing fee | Up to 4% of the loan amount |
| Foreclosure charges | Minimum charge Upto 4% |
Factors That Affect Your Personal Loan Fees & Charges
The fees and charges applicable to a personal loan can vary based on your loan details and credit profile. Key factors include:
- Loan amount and tenure: The approved loan amount and repayment period may influence certain charges and the overall borrowing cost.
- Credit profile: Factors such as your CIBIL score, income and repayment history may affect the pricing you are offered.
- Prepayment or foreclosure: For loans subject to such charges, the timing of prepayment and the applicable terms may determine the amount charged.
Reviewing these factors can help you understand the total cost of borrowing and choose a loan option that suits your financial needs.
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