Refinance Loan Fees and Charges: Complete Checklist

Refinance Loan Fees and Charges

Refinancing a loan can help farmers reduce tractor Refinance Loan rates, improve cash flow, and manage repayments better. However, it is crucial to be aware of the Refinance Loan fees and charges before applying. There are several fees & charges, such as processing charges, prepayment penalties, legal fees, and valuation costs. Farmers applying for a Refinance Loan should carefully evaluate these costs before proceeding.

Fees and Charges for Refinance Loan

Type	Interest Rate and Charges
Processing Fees / Documentation Charge:	Up to 2% of the loan amount + applicable taxes
Repayment / EMI Bounce Charges:	As shown in the table below
Loan sanction amount (in INR)	Charges in (in INR)
< ₹ 5 lakh	₹ 500
₹ 5 – ₹ 50 Lakhs	₹ 1000
> ₹ 50 Lakh – ₹ 2 Crore	₹ 1500
> ₹ 2 Crore	₹ 2000
Prepayment/ Foreclosure Charges:	2% of principal outstanding + applicable taxes
Valuation Charges:	As per actuals
Penal Charge/Late Payment Charge (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
Legal /Recovery /Repo /Parking & other Charges:	As per actuals
RC Non submission Charges:	₹ 1000/-
Duplicate NOC Charges:	First 3 paper copies - free of cost
Duplicate NOC Charges:	₹ 1000/- + applicable taxes
Repayment Swap Charges (per swap):	₹ 500/- + applicable taxes (Applicable only for branch walk-ins)
Document Charges:	Nil for documents like Statement of Account/Repayment Schedule /Foreclosure Letter & Welcome Kit

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

FAQs & Support

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How long does it take to pay off Refinance Loan fees?

Refinance Loan fees are typically deducted from the loan amount at the time of disbursement. If included in the loan balance, these fees are repaid through EMIs over the loan tenure. The time taken to cover these costs depends on the chosen repayment tenure.

How does refinancing affect my credit score and any associated fees?

Refinancing can initially lower your credit score due to a hard inquiry from the lender. However, timely repayments on the new loan can gradually improve credit health. Monitoring your credit report regularly ensures better financial planning when refinancing a loan.

How do I calculate the total cost of refinancing?

To estimate refinancing costs, add up processing fees, documentation charges, interest payments, and valuation costs . Using an online calculator can help determine the total repayment amount, ensuring you make an informed decision before refinancing your existing loan.

Can refinancing fees be added to the new loan amount?

Yes, you can request to include refinancing fees in the total loan amount. This means you won’t need to pay charges upfront and the same will be deducted from the sanctioned loan amount.

What types of fees are involved in refinancing a loan?

During loan application and disbursement, various charges such as processing fees, documentation charges, and valuation costs are involved.

Why do lenders charge fees when refinancing a loan?

Lenders impose fees to cover administrative work, risk assessment, and document verification. These costs ensure the smooth processing of the refinance application.

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