Are you planning to get a personal loan to fund your dream wedding or meet urgent medical expenses? From funding vacations to paying college fees, a personal loan is a useful financial instrument that can help you make big purchases when you need them the most.
Additional Read – 9 Features of a Personal Loan that Make it Popular
However, it is essential to remember that these loans often come with specific personal loan fees and charges.
Here’s a thorough list of said charges related to personal loans
• Processing Fees
A one-time non-refundable processing fee is levied on availing a personal loan at the time of application.
• Penal or Additional Interest
Penal or additional interest is the rate of interest charged over and above personal loan interest rates as a penalty for delayed EMI payments.
• Bounce Charges
Bounce charges are personal loan charges levied when you skip an EMI payment due to insufficient funds in your bank account.
• Mandate Rejection Service Charge
This is a personal loan charge levied upon rejection of any of the services rendered by the lending institution.
• CCOD Annual Maintenance Charges
When applicants apply for a personal loan under flexible funding option such as Cash Credit or Overdraft, the maintenance of such an account accompanies afee known as the CCOD annual maintenance charge.
• Outstation Collection Charges
In case the cheque deposited for EMI payment of personal loan has been made to a non-local branch of the lender, the borrower will be charged with a fee for the collection of such cheques known as the outstation collection charge.
• Statement of Accounts
The lender issues the Statement of Accounts for every personal loan applicant, which has a list of all transactions made from the applicant’s bank account for a given period. To issue this Statement of Accounts, lenders charge a fee for the hard copy, whereas the soft copy is free of cost.
• Loan Cancellation Charges
If an applicant wishes to cancel their personal loan following the process of loan disbursal, the lender will levy loan cancellation charges.
• Instrument Swap Charges
If an applicant wishes to swap or exchange their personal loan liability or their cash flow with a different financial instrument such as bonds or equities, they can do so after paying personal loan charges such as instrument swap charges.
• Duplicate Repayment Schedule
Lenders issue borrowers a repayment or amortisation schedule – a table showing how the borrower’s personal loan has evolved. If a request is made for a duplicate schedule, the lender will charge a specific fee for the hard copy of the same, the soft copy being non-chargeable.
• Duplicate NOC
If a personal loan borrower requests for a duplicate NOC or No Objection Certificate, the lender will require the borrower to pay a specific fee for the reissue.
• Post-Dated Cheque Charges
Personal loan fees are levied for post-dated cheques made for EMI payments. A post-dated cheque is one that mentions a future borrowing date.
Now that you know all about personal loan fees and charges, you can get a clearer idea of what your loan may cost you.
Are you looking to apply for a personal loan online? If yes, then do so with India’s leading lending institution – Tata Capital. We offer personal loans for self-employed and salaried individuals.
Visit our website and check your eligibility, determine the right EMI using our online personal loan EMI calculator, submit relevant documents, and apply for an instant personal loan today!