Personal Loan Processing Fee: Up to 5% of Loan Amount

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Personal Loan Processing Fees and Charges

While Personal Loans offer flexible solutions by providing quick access to capital, there are fees and charges that come along with them. These include processing fees, prepayment penalties, and late payment fees. Responsible borrowers must be aware of them before applying for a loan.

Charge type	Applicable amount
Personal loan interest rate (Fixed)	Starting from 9.98% p.a.
Loan processing fees (Non Refundable)	Up to 5% of the final loan amount plus taxes.
Loan processing fees (Non Refundable)	Will be deducted from the loan amount at the time of disbursal.
Stamp Duty Charges	As per the respective State’s Stamp Act
Penal charges on Overdue EMI	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount.
Facility Rate of Interest (FRI) Charges	EMI standing unpaid on respective due dates shall attract FRI charges @ contractual rate for the number of days of delay in receipt of EMI. On non-receipt of FRI charges before the next EMI date, the charges will be adjust from the next EMI received.
EMI dishonour/Bounce charges	₹750 per instance (Inclusive of applicable taxes)
Swap charges, i.e. charges for change in repayment mode, repayment instrument or EMI date	₹500/- plus taxes per instance
Lock-in Period for foreclosure and Part payment:	No lock-in period for Kotak Personal loans post servicing of first EMI.
Foreclosure/Part payment charges	Up to 3 years - 4% + taxes on outstanding principal/part payment amount
Foreclosure/Part payment charges	After 3 years - 2% + taxes on outstanding principal/part payment amount
Part payment clause	Allowable limit is up to 20% of Principal loan outstanding
	It is allowed only once in a financial year
	The effect of the part payment can be given on either EMI or Tenure
	Either foreclosure or part payment is allowed in one financial year

Physical SOA or Amortization schedule	Once in a year- No charge.
Physical SOA or Amortization schedule	Post that - ₹200 plus taxes per request
Legal charges	at actuals
Cancellation charges for Digitally availed loans within cooling off period (Cooling off period : Transaction+4days)	NIL
Cancellation charges for Digitally availed loans after cooling off period (Cancellation can be done only before first EMI date)	₹1000.00 plus Taxes or 1% of principal outstanding plus Taxes, whichever is higher
Cancellation charges for Non-Digital loans availed through offline channels (Cancellation can be done only before first EMI date and No cooling off period applicable)	₹1000.00 plus Taxes or 1% of principal outstanding plus Taxes, whichever is higher
Disclaimer: The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website.

What are the Processing Fees and Charges for Personal Loans?

A Personal Loan processing fee or Personal Loan charge is levied as a percentage of the loan amount to cover the cost of sanctioning a loan. This is one of the most basic fees charged while taking out a loan. These charges vary depending on the amount you withdraw, the financial institution you choose, the loan term and few others.

Typical Fees and Charges on Personal Loans

Other than processing fees, Personal Loans come with other charges that borrowers should be aware of. This will help them manage their finances effectively and avoid unnecessary expenses. Once the documents required for a Personal Loan are submitted, they will be processed and disbursed. A few common fees associated with Personal Loans include:

Loan Processing Fee: Loan processing fees, non-refundable, are up to 5% of the final loan amount plus taxes. This amount is deducted from the loan disbursement, not requiring a separate payment. It covers administrative costs associated with processing the loan application.
Prepayment Charges: For loans disbursed on or before - 1st February 2020 - Part Pre payment is not allowed. For loans disbursed after 1st February 2020. Post completion of 12 months -Part-Prepayment is allowed up to 20% of Principal loan outstanding. It is allowed once a year. Charge per instance of part payment is INR 500 plus taxes
Repayment Mode Swap Charges: These charges amount to ₹500 + Taxes per transaction. This fee applies each time there is a change in the repayment mode.
EMI Bounce Charges: These charges stand at Rs. 750 per instance (Inclusive of applicable taxes). This fee is applicable each time an Equated Monthly Installment (EMI) payment fails or bounces.

A Personal Loan Near You

Choosing the right financial institution makes securing a Personal Loan a lot easier. Search for the nearest Kotak Mahindra Bank to apply for a Personal Loan.

Don’t forget these factors while selecting a Personal Loan:

Check the loan amount
Compare the interest rate
Read the terms and conditions
Check the processing fee

Personal Loan Overdraft

Personal loan overdraft is a credit facility offered by Kotak Mahindra Bank which allows you to overdraw your account balance for meeting your financial needs. This loan is allowed up to a specified limit depending on your account balance.

Charges specific to Personal Loan Overdraft facility	Applicable amount
Interest rate	13.50% per annum onwards
Processing fees	Up to 5% of the final loan amount plus taxes
Penal Charges on Overdue/Overutilised amount	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount plus applicable taxes not exceeding Rs. 5 lac (plus applicable taxes) in a calendar month
Lock-in Period	12 months
Foreclosure Charges (post lock-in period)	Nil
Foreclosure Charges (in case lock-in period is not served)	4% + taxes on current sanction limit
Non-utilization charges	If average utilization of the facility is below 25% of drawing limit in the account, then Charges at 0.40% p.a. will be applied on the unused limit + applicable taxes
Repayment account swap charges	Rs.500 + taxes per swap
Account statement charges	Physical account statement: Rs.200 + taxes per instance (can be availed from any Kotak branch)
Account statement charges	Please note that account statement can be downloaded for free via net banking/mobile banking.
Bounce/dishonour charges	Rs. 750 per instance (Inclusive of applicable taxes)
Disclaimer: The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website

GSFC applicable only for Standard Chartered Bank Personal Loan Migrated Customers

Charge type	Old GSFC - Standard Chartered Bank	Revised Standard Chartered Bank Personal Loan Fees and Charges
Charge type	Applicable amount	Applicable amount
Personal loan interest rate (Fixed)	10.25% to 23% per annum	No change
Loan processing fees (Non Refundable)	up to 2.25% of loan amount	No change
Stamp Duty Charges	-	No change
Penal charges on Overdue EMI	2% per month overdue Charges on the principal along with interest	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount.
EMI dishonour/Bounce charges	Rs 495 + GST	Rs.495 + applicable taxes
Swap charges, i.e. charges for change in repayment mode, repayment instrument or EMI date	INR 500 + GST	INR.500 + applicable taxes
Lock-in period	12 months lock-in period	No change
Foreclosure charges	Number of EMIs paid Pre-closure charges on principal outstanding	Lock-in period [12 months] : Not allowed Post Lock-in period : 3% + GST on outstanding principal.[If any other foreclosure/pre-closure charges committed in writing via a Sanction letter or in the Agreement letter like NIL, 1% or 2% then such an event whichever is lower shall be applicable]
	0 - 12 Not Allowed
	13 to 24 5% + GST
	25 to 36 4% + GST
	>36 3% + GST
Part pre-payment charges	Number of EMIs paid Pre-closure charges on principal outstanding	Part-Prepayment is allowed up to 25% of Principal loan outstanding. It is allowed once a year. Charge per instance of part payment is INR 500 plus taxes
	0 - 12 Not Allowed
	13 to 24 4% + GST
	25 to 36 3% + GST
	>36 2% + GST
Physical SOA or Amortization schedule	No charge	No change
Facility Rate of Interest (FRI) Charges	EMI standing unpaid on respective due dates shall attract FRI charges @ contractual rate for the number of days of delay in receipt of EMI. On non-receipt of FRI charges before the next EMI date, the charges will be adjust from the next EMI received.

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Frequently Asked Questions

When to take a Personal Loan?

The purpose of borrowing a Personal Loan is different for different people. A Personal Loan is a good option if you are short of money to pay your bills or want to reconstruct your house. After researching the various options available, select the best one for you.

Is there a processing fee for Personal Loans?

Yes, Personal Loans have processing fees. The processing fee is charged to cover the cost of giving a loan. This charge may vary from one financial institution to another. While choosing a Personal Loan, you must ensure it is reasonable.

Can I pay EMI after the due date?

Most financial institutions allow customers to make EMI payments after the due date. However, a penalty for late payment will be charged. Making EMI payments on or before the due date is advised to avoid late fees and maintain good financial health.

Lock-in period structure :	A) Loan tenure <= 18 months : Lock-in period will be 50% of the total tenure period.
	B) Loan tenure > 18 months : 12 months Lock-in period.

How is the processing fee for a Personal Loan calculated?

Banks accrue administrative costs to approve and disperse a loan. Even though it is a small amount compared to the loan offered, it varies across financial institutions. For instance, the processing fee may change depending on the loan amount.

How do I choose the best Personal Loan financial institution?

There are various factors to consider when selecting the best personal loan financial institution. Ensure the loan charges are checked, the location is nearby and read the terms and conditions of the loan.

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Reviewed on 03/23/2022

Personal Loan Fees and Charges