If you hold a personal loan, banks tend to charge what is known as processing costs. This is generally a small amount that the borrower has to pay to the lender for the processing of the loan. These costs are deducted from the loan amount and only the reduced amount (loan minus processing costs) is paid to the borrower.
It is important to incur the processing costs, because it is an extra costs and reduces the cash you receive in the form of loan after the bank approves the loan. Here we state the processing costs charged by different banks.
After 6 banks, these processing costs raise on a personal loan
I. HDFC Bank: The largest private bank counts on £6,500 plus goods and service tax (GST).
Ii. Icici Bank: This private bank counts up to 2 percent of the loan amount as processing costs.
III. Kotak Mahindra Bank: The costs charged by this private bank are very high, ie 5 percent of the loan amount plus taxes.
Iv. Punjab National Bank (PNB): This state finance charges 1 percent of the loan amount in the form of processing costs of the general public. There are no charges for defense personnel.
V. IDFC Bank: This private bank charges 2 percent of the total loan amount as processing costs of borrowers.
Vi. State Bank of India (SBI): Last but not least, the State Bank of India (SBI) lifts 1.50 percent of the loan amount as processing costs with a minimum of £1,000 (plus gst) and a maximum of £15,000 (plus gst).
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