class="post-template-default single single-post postid-55489 single-format-standard wp-embed-responsive post-image-above-header post-image-aligned-center sticky-menu-fade right-sidebar nav-below-header separate-containers header-aligned-left dropdown-hover" itemtype="https://schema.org/Blog" itemscope>

Cheap loans may be expensive! Know 6 hidden expenses of personal loans which are more heavy than EMI – Cheap Loan Can Turn Costly Know the 6 Hidden Charges in Personal Loans that are Heavier Than the Emi Itslf

by

When taking personal loans, we often focus only on EMI and interest rates.

Know these 6 hidden charges before taking personal loan
It is easy to take a personal loan, but sometimes we ignore the hidden expenses that later become a big trouble.

Processing fees
Money is deducted before getting a loan
Banks or NBFCs charge a processing fees up to 1-3%. If you took a loan of Rs 5 lakh and the fee is 2%, then you will get only 4.9 lakh rupees but it will be 5 lakh rupees to return.

Prepelation / Fourclose Charge
Penalty for early repaid!
If you repay the loan before the scheduled time, then there is a fourclose charge from 2% to 5%. Prepares only if these charge is not more than savings.

Late Payment and EMI bounce fees
If it is late, you will be charged
EMI bounced may cost from 500 to 1,000 rupees. This can also make a credit score. Keep in mind that there is a balance in the account.

Insurance expenses
Unwanted insurance policy is added
Many times the loan is added to personal accident or loan protection insurance and interest is also charged. The policy is not mandatory, ask clearly.

GST on every charge
Every fee will be charged 18% GST
Processing fees, late payment, forecluser – 18% GST is also added to every charge. This further increases the total loan cost. Do not be happy with the EMI being reduced while not taking, all the charge should be added to the real expenses.

What should be asked from the bank?
Do this question
What is the processing fee?
Fourclose Charge?
Is there any insurance?
How much will the total GST be?

Take a loan wisely
There is security in information
Personal loans may be necessary, but taking a loan without complete knowledge can trap you in a debt trap. Decide carefully and wisely.

Leave a Comment