Popular searches

Product Home Loan

Products & Services (12)

Apply NowProduct Home Loan
Apply Now Product Loan Agaisnt Property - Home Loan
Apply Now Product Balance Transfer - Home Loan
Apply Now Product Home Loan EMI Calculator

Recent searches

DownloadForm Home Loan Application Form
Download Product Loan Agaisnt Property - Home Loan
Download Article Benefits of Balance Transfer


  • Home Loans, now at 6.50% p.a.

    Unlimited benefits with a start-to-finish digital process with IDFC First Bank Home Loans

    Home Loan
  • Activate your Credit Card within minutes and enjoy unlimited benefits

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

Types of Personal Loan charges you should know about

10 Nov 2021 by Team FinFIRST
Personal Loan Charges

Before getting a personal loan, it is vital for you to know the charges that come with it. Read on to know what they are

Personal loans can help fund many requirements. From marriage to an emergency, you can utilise a personal loan to cover any expense. However, to get the best out of your loan, ensure you know everything about it. You can start by analysing the charges and processing fees of the personal loans offered by various institutions.

Types of charges in a personal loan

Personal loans attract many types of charges that you must pay compulsorily. They are:

Interest rate

Personal loans have a higher interest than home loans because they are a form of unsecured loans. The personal loan interest rate can start at just over 10%. The interest rate applicable to an individual's interest rate is determined by his age, credit rating, job, creditworthiness, and other factors.


You can easily get a Personal Loan on your Aadhaar Card, here’s how

Everything you must know if you missed your EMI payment

Processing charges for a personal loan

The processing fees for a personal loan is used to cover the bank's operational costs and the personal loan approval time it dedicates to your loan. The processing charge is normally low, ranging from 0.5-3% of the loan amount per year. You have the option of having this cost deducted from your loan or paying it upfront.

Furthermore, most banks charge a non-refundable processing cost, which means even if you cancel the loan after it has been approved, the fee will not be refunded.

Goods and Services Tax (GST)

As of writing, 18% GST is applied to loan-related services, such as prepayment and part-payment fees, processing fees, cancellation fees, duplicate statement issuing fees, and so on. However, note that GST does not apply to interest costs.

A few banks, such as IDFC FIRST Bank, do not charge any processing fee on personal loans. It is an exclusive service offered by a few select banks.


EMI bounce fees

You will be charged an EMI bounce fee if you miss an EMI payment.

Prepayment/foreclosure penalties

Paying your personal loan before the term ends is an option offered by many banks, including IDFC FIRST Bank. Others, though, have a six to 12-month lock-in term. It implies you cannot close your personal loan before the term is over.

Loan cancellation penalty

If you change your mind and want to cancel your personal loan after it has been approved, the bank may impose a loan cancellation fee. A bank may impose either a fixed cancellation fee plus 18% GST or the corresponding interest payment from the time the loan was issued to the time it was terminated.

Charges for switching repayment modes

Customers have the liberty to switch their personal loan repayment mode, although they may have to make an additional payment. When you change your repayment mode in the middle of your loan term, lenders may charge ₹500 plus 18% GST.

Charges for duplicate paperwork

Some banks charge ₹50 to ₹500 plus 18% GST to reprint loan-related paperwork, such as indices, statements, No Objection Certificates (NOCs), and amortisation. A minor fee may be charged for this service.

Other fees

Legal and stamp duty are a few other types of fees you may have to pay for availing of a personal loan. They may differ from one lender to the next.

IDFC FIRST Bank should be considered for your unsecured loan requirements. You can apply and get an online loan without a processing fee. The interest rate is also low, which saves money and keeps your EMIs low. Check out Personal Loan EMI Calculator for monthly installments



The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.