Posted On: 24-June-2022
If you have opted for personal loan you must know that it comes with several charges and fees. Having a little knowledge about all these hidden charges in personal loans helps you to compare loan options and their affordability. Knowing all this helps you prepare your finances so that you can be ready for these processing charges when you apply for personal loan.
Given below are the essential details of different personal loan charges you should be aware of:
1. Interest Rate - It is the rate in which you can avail your personal loan, in other words, interest rate is the price at which the funds are provided to you, and it is the amount which is added to the total cost of your loan amount. The interest rate varies with different lenders therefore you must do your own research and pick a loan agency offering lowest interest rate.
2. Processing Fee - This fee covers all the processing cost of your loan. The processing fee is usually 4% of your entire loan amount but it may rise with different lenders depending on which agency charges how much. It is deducted while the loan amount is sanctioned and before it is transferred to you.
3. Penal Interest - When you pay your EMI amount post your due date of monthly instalments you are charged penal interest. It usually is 2 to 4% of your EMI amount.
4. EMI Bounce Charges - You are required to pay EMI bounce charges when your EMI bounces. Usually you are charged between Rs 600 to Rs 1200 for a single bounce of EMI. To avoid paying any bounce charges you must plan your repayment and pay loans on time.
5. Document or Statement Charges - There are loan agencies and lenders around who issues you document related to your personal loan as well as loan statements by charging a certain amount of money. This is not the case at ESWARI CAPITAL. We provide our customers these statements free of charge.
You must know that these are charges that are levied by almost lenders, now it depends whether a lender charges all of these hidden charges or only a few of them. You must therefore do your own research before selecting which lender to borrow from.