What is the processing charge for EMIs?

Processing charges are typically around 3% of the loan amount plus applicable taxes.

What is the Personal Loan charge?

Charges include processing fees, late payment fees, prepayment penalties, and applicable taxes.

How long will it take for my loan to be approved?

Loan approval can take from a few hours to a few days, depending on documentation and verification.

Can Personal Loan fees be negotiated?

Yes, fees may be negotiable in some cases, especially for customers with strong credit profiles or existing relationships with the lender.

Personal Loan Processing Fees and Service Charges

Q: What is the difference between part payment, pre-payment and pre-closure?

Part payment reduces the outstanding loan balance without closing it. Pre-payment and pre-closure involve repaying the full loan before maturity, sometimes with applicable charges.

Q: Are there any costs or fees related to transferring the amount of a Personal Loan?

Yes, balance transfers may involve processing fees and other charges, though lower interest rates can offset these costs.

Q: How is the interest rate calculated for a Personal Loan?

Interest rates depend on factors like credit score, loan amount, and tenure. Rates may be fixed or floating, affecting the overall loan cost.

Q: Will my interest rate change after transferring my Personal Loan?

Yes, the interest rate may change after transfer, often reduced to make the transfer beneficial and lower EMIs.

Q: What unstated fees are included with a Personal Loan?

There are no hidden fees. All charges are transparent and disclosed to the borrower.

Q: Are Personal Loans costly?

Personal Loans can be cost-effective, but interest rates and fees vary. Reviewing charges helps avoid unexpected expenses.

What are Personal Loan Fees and Charges?

Understanding Personal Loan fees and charges is crucial when planning your finances. These costs include the processing fee for a Personal Loan application, which cover the initial administrative expenses. Personal Loan charges may include late payment penalties or prepayment fees. Explore our Personal Loan options today and find the perfect solution for your financial interest rates, fees, and charges.

We strongly recommend reviewing all fees and charges to accurately assess the total cost of your loan.

List of all fees and charges

Detailed Personal Loan Fees & Charges Breakdown

Type	Interest Rate and Charges
Processing Fee:	Up to 3% of loan amount + applicable taxes
EMI Dishonour/ Bounce Charges* *A bounce charge is a charge for (i) dishonour of any repayment instrument; or (ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate	As shown in the table below
Loan sanction amount in Rs.	Charges in Rs.
< 5 lacs	₹ 500
5 – 30 Lacs	₹ 1000
> 50 Lacs – 2 Cr	₹ 1500
> 2 Cr	₹ 2000
Penal Charge/Late Payment Charges (LPC):	2% per month on overdue EMI + applicable taxes
	*LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023
	*Taxes applicable on LPC w.e.f. 1st Apr 2024
Part pre-payment Charges	5% of prepaid amount + applicable taxes
Foreclosure Charges	5% of principal outstanding + applicable taxes( As per the latest NBFC Master Circulars )
Annual Maintenance Charges	Nil
Statement or document retrieval charges	Duplicate NOC: Up to Rs. 500/- + applicable taxes (Charge is applicable post 3 free copies)
Repayment instrument swap charge (per swap):	Rs.500/- + applicable taxes (applicable only for branch walk-ins)
Charges for documents like Statement of Account/Repayment Schedule /Foreclosure Letter & Welcome Kit:	Nil
Cooling-off/ look-up period during which Borrower shall not be charged any penalty on prepayment of loan:	3 Days from the date of disbursement
Loan cancellation fee post cooling off period of 3 days:	5% of principal outstanding loan amount + applicable taxes
Field collection service charge:	Rs. 500/- per collection + applicable taxes
Legal fees and charges:	Legal fees and charges: Up to Rs. 30,000/- + applicable taxes
Recovery charges:	Recovery charges: Up to Rs. 15,000/- + applicable taxes

*Terms & Conditions Apply. All actual charges will be as per Key Fact Statement (KFS) shared by the company.

Types of Fees and Charges on Personal Loan

1. Origination Fee	This is a one-time fee, known as the processing charges for Personal Loan, charged when the loan is disbursed.
2. Late Payment Penalty	If you delay payments, Personal Loan late payment charges may accrue, affecting your credit score.
3. Prepayment Penalties	There are prepayment charges if the loan is paid off before the end of the term to compensate for the loss of interest.
4. Annual Maintenance Fees	We charge annual fees to cover account servicing, impacting the overall cost of the loan.
5. Cheque Bounce Charges	If your loan repayment cheque bounces, expect additional fees, emphasising financial responsibility when managing loan repayments.

Impact of Late Payment Charges on Your Loan

Rates and examples Our Penal Charge/Late Payment Charge (LPC) is 2% (p.m.) on the EMI overdue + applicable taxes. For example, if your EMI is ₹10,000 and you miss the due date, you will incur a late payment charge of ₹200 plus taxes for that month. This is a compounding charge, applied monthly until the overdue EMI is cleared.

Credit score impact Missing an EMI payment is reported to credit bureaus (like CIBIL) and will severely impact your credit score. A lower credit score can make it difficult or more expensive to secure future loans, including home loans or credit cards.

Prepayment and Foreclosure Charges Explained

When applicable Foreclosure charges are applicable when you pay off the entire principal outstanding amount before the scheduled loan tenure ends. Part Payment charges are applicable when you pay only a portion of the outstanding principal amount prematurely.

Calculation examples Our foreclosure charge is 5% of the principal outstanding + applicable taxes. If your remaining principal is ₹5,00,000, the foreclosure charge would be ₹25,000 plus taxes. Always check your loan agreement as some lenders may allow part payment after a lock-in period, or offer nil charges under certain conditions.

GST and Taxes on Personal Loan Fees

Applicable fees attracting GST In India, the Goods and Services Tax (GST) is applicable on most services provided by financial institutions, including the personal loan processing fees, late payment charges, bounce charges, prepayment penalties, and foreclosure charges.

Recent GST updates (effective dates) Our current Penal Charge/Late Payment Charge (LPC) has applicable taxes levied on it w.e.f. 1st Apr'24. The current applicable GST rate will be added to the fee amount stated in the detailed charges table.

How are Processing Fees for Personal Loans Calculated?

The processing fees for Personal Loans are determined as a percentage of the total loan amount, typically ranging from 1% to 3%. This fee compensates the lender for administrative work associated with loan approval and disbursement. For instance, if you secure a ₹ 10 Lakh loan with a 2% fee, your processing charge would be ₹ 20,000. While seemingly simple, understanding this calculation is crucial, as it adds to the initial cost of borrowing. Additionally, borrowers must consider Personal Loan EMI late payment charges and other personal loan fees and charges, which can further impact the financial landscape of the loan. An informed approach ensures borrowers can manage their obligations efficiently, minimising unexpected expenses.

FAQs & Support

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What is the difference between part payment, pre-payment and pre-closure?

Part payment (or part-prepayment) reduces the outstanding balance without closing the loan. Pre-closure settles the debt before maturity in full, while pre-payment is often used interchangeably with pre-closure, but sometimes refers only to paying off the loan early. Always check the loan agreement for specific definitions and applicable charges.

Are there any costs or fees related to transferring the amount of a Personal Loan?

Yes, balance transfers can involve processing fees and charges, but savings from lower interest rates often offset these.

What is the role of the Key Fact Statement (KFS) in understanding personal loan fees?

The KFS is a mandatory, standardized document that outlines the final, legally binding terms, including all personal loan fees and charges. It is the single most important document for understanding the total cost of your loan.

Can I get a waiver on personal loan processing fees?

Waivers on personal loan processing fees are generally offered during specific festive or promotional periods, or for customers with exceptional credit histories. It is always worth asking your loan officer.

How is the interest rate calculated for a Personal Loan?

Personal Loan interest rate depends on your credit score, loan amount, and tenure. Rates can be fixed or floating, impacting the overall cost of the loan.

Will my interest rate change after transferring my Personal Loan?

When transferring, the interest rate may change. We offer lower rates to incentivise the transfer, realistically reducing your EMIs.

What unstated fees are included with a Personal Loan?

Additional personal loan fees and charges can encompass documentation fees, annual maintenance costs and foreclosure charges.All applicable charges are detailed in the Key Fact Statement (KFS)..

Do all personal loans have the same fees and charges?

No. Fees and charges, especially the processing fee for personal loan, late payment, and prepayment charges, vary significantly between different lenders (NBFCs and Banks). Always compare the personal loan fees and charges before signing the agreement.

Are Personal Loans costly?

Personal Loans can be cost-effective, though interest rates and Personal Loan fees and charges vary. Reviewing these can prevent unexpected expenses.

How can I reduce processing fees on my personal loan?

Processing fees are often negotiable. Maintaining a high credit score and having a strong relationship with the lender can increase your chances of getting a reduced personal loan processing fee or a waiver during promotional periods.

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