Important Personal Loan Factors You Should Consider

By BankBazaar | August 31, 2015

When you opt for a Personal Loan you need to understand interest might not be the only component you end up paying. There are a few other fees and charges that need to be factored in. Let’s find out more, shall we?

Processing fees

It is a fee charged on the loan amount and you are expected to pay this upfront. It is a non-refundable amount and is charged for determining the eligibility of a potential borrower. The fees vary and some banks may charge a flat fee.

Prepayment fees

Banks normally charge a prepayment fee if you want to pay the EMIs before the tenure. It is permitted only after certain period. The fees might vary between 2 – 5 % of the outstanding loan amount.

Late-payment charges

You will have to pay a late-payment fee if there is a delay in paying the monthly EMIs. It is added to the monthly EMI and ranges between 2 – 3%.

Cheque bounce charges

If you have submitted post-dated cheques for your Personal Loan EMIs and they are not honored, you are liable to pay the bank a cheque bouncing penalty which might be anywhere between Rs. 250 and Rs. 500. These Personal Loan EMIs calculate by Personal Loan Calculator

Yes, it is very important to read and understand the fine print so you are aware of these charges. There is also a possibility to negotiate on these charges. Now that you are equipped with this info, how about exploring offers on Personal Loans?

 

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