I am going to record down the fees and term and conditions associated with the personal bank loan provided by my bank card bank that is issuing. Your bank might have terms that are different conditions.
Although the loan is immediate and pre-approved, there was nevertheless processing cost of just one%. Thus, you will be charged a processing fee of Rs 5,000 if you have been made an offer of a loan of Rs 5 lacs. And yes, there clearly was solution taxation.
In addition, there is certainly a transaction that is one-time of 2.5% associated with loan quantity.
If you would like prepay the mortgage, there is prepayment penalty of 3% in the outstanding principal amount. Banking institutions are allowed to charge penalty that is pre-payment fixed price loans such as for instance unsecured loans. Ergo, in the event that you had taken financing to tide over a tremendously short-term crisis, exit isn’t simple for you.
The money will be credited to your account (or draft sent) in a few hours or days in most cases, as soon as you accept the terms and conditions. In other situations, there is an approval that is additional while the quantity is credited for your requirements post approval. The processing transaction and fee fee would be adjusted against your loan quantity. Thus, you will get Rs 4.79 lacs in the first place if you opt for a personal loan of Rs 5 lacs.
Rs 5 lacs – Rs 5,000 (processing fee) – Rs 12,500 (deal cost) – Service Tax