Banks provide various loans based on their customers’ requirements, and they charge different types of fees or charges on the loans, such as processing fees, pre-closure charges, and late payment charges with penalties; here are the Bank Charges on Various Loans in 2024.
Bank Loans are a common way to borrow money from banks for various needs. However, loans come with a cost, including interest and other charges. Knowing about these fees in advance is essential to avoid extra burden. Different types of loans are available for different needs, such as home, personal, education, and vehicle loans.
In recent times, the number of people taking loans from banks has been increasing, and loans are crucial in the operations of banks. Banks collect deposits from customers and give them as loans with interest. Additionally, banks charge other fees, which vary depending on the type of loan.
Home Loans
Banks charge a processing fee ranging from 0.5% to 1% of the loan amount for home loans. They keep the house deeds until the loan amount is repaid, and they charge fees for this. Furthermore, if you want to transfer your loan from one bank to another, you have to pay some charges. A penalty charge of 2% to 6% applies for early repayment of a fixed-interest loan. Additionally, there are administration fees, technical and legal assessment fees, and GST charges.
Education Loans
Banks charge fees for processing education loans, which can be up to 1%of the loan amount. If you fail to make EMI payments, you will have to pay a 2% to 3% penalty. Moreover, those who do not take insurance will be charged an additional interest of 0.05% to 2%. Loan applicants are charged mortgage creation charges of 0.25% to 0.5% if they borrow against the property.
Personal Loans
Processing charges ranging from 0.5% to 2.50% of the loan amount are charged for personal loan processing. If you make lump sum payments, you will have to pay 2% to 4% charges. Some banks charge up to Rs.500 on the loan statement. Late payment of EMI will incur a penalty along with GST.
Vehicle Loans
Banks charge 0.50% to 1% to process a car loan. Banks charge up to 5% on pre-closure. In case of late payment of EMI, a penalty plus GST will be applicable.
