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HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 12.5%
Tenure upto1-5 Years
Processing Fee6,500
ICICI Bank
100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest11% - 13%
Tenure upto1-5 Years
Processing FeeUpto 2%
Axis Bank
Low Processing fee
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 17.15%
Tenure uptoUpto 6 Years
Processing FeeUpto 2%
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What is Personal Loan Processing Fees

A processing fee is a one-time fee levied by lenders to cover the administrative costs involved in processing and disbursing a personal loan. The fee is usually deducted upfront from the loan amount or added to the total cost of the loan.

Why Do Lenders Charge a Processing Fee

Lenders charge a processing fee to recover costs incurred during the loan application process. This includes document verification, employment and income checks, and other administrative procedures to assess the borrower's creditworthiness.

How Much Is the Processing Fee on a Personal Loan

Personal loan processing fees usually range between 0.5% to 4% of the loan amount. While some public sector banks may charge lower fees, private banks and NBFCs can charge higher fees based on their internal policies and the applicant's credit profile.

Is the Processing Fee Refundable

Processing fees are usually non-refundable, even if your loan application is rejected or if you cancel the loan post-approval. However, some lenders may offer promotional waivers or lower processing fees during festive seasons.

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Complete List of Personal Loan Fees & Other Charges

Charge Type Description
Processing Fee 0.5% to 4% of the loan amount; capped by some lenders
Prepayment/Foreclosure Charges NIL for floating rate loans (as per RBI); fixed rate loans usually range around 2% - 5% on the principal outstanding
Stamp Duty Charges As per actuals
Loan Cancellation Charges Usually around Rs 3,000
Loan Statement Charges Often NIL or up to Rs 500 per statement
Documentation Charges Around Rs 500
Verification Charges Around Rs 500-Rs 1,000
GST Applicable on all processing fees and charges

Processing Fees on Personal Loan To Pensioners & Defense

The processing fees on personal loan offered to defense and pensioners are usually NIL or lower than those offered to regular salaried or self-employed individuals.

Bank Processing Fee
SBI Personal Loan to Defense Sector Employees 100% waiver
PNB Personal Loan to Defense Personals NIL
Central Bank of India Personal Loan to Pensioners NIL
Bank of India Personal Loan - Star Pensioner Loan Scheme Senior Citizen (60 years & above)- NIL
For others- One time @ 0.50% (Rs 250-Rs 1,000)
Baroda Pensioners Loan Rs 1,000

Bank/NBFC-wise Personal Loan Processing Fees 2025

Bank Processing Fee Loan Amount Interest Rates (p.a.)
SBI Up to 1.5% of the loan amount (Min. Rs 1,000; Max. Rs 15,000) Up to Rs 35 lakh 10.30% – 15.30%
HDFC Bank Up to Rs 6,500 Up to Rs 40 lakh 10.90% – 24.00%
Punjab National Bank Up to 1% of the loan amount Up to Rs 20 lakh 10.50% onwards
Tata Capital Up to 5.5% of the loan amount (Up to 4% for instant personal loan up to Rs 1 lakh) Up to Rs 35 lakh 11.99% onwards
ICICI Bank Up to 2% of the loan amount Up to Rs 50 lakh 10.80% onwards
Axis Bank Up to 2% of the loan amount Up to Rs 10 lakh 10.49% onwards
Kotak Mahindra Bank Up to 5% of the loan amount Up to Rs 35 lakh 10.99% – 16.99%
IDFC FIRST Bank Up to 2% of the loan amount Up to Rs 10 lakh 9.99% onwards
IndusInd Bank Up to 3.5% of the loan amount; 2% for Instant Personal Loan Up to Rs 50 lakh (Up to Rs 5 lakh for instant personal loan) 10.49% onwards

Last updated on 16 Dec 2025

How much GST do you have to pay on a personal loan

GST at the rate of 18% p.a. is applicable to processing fees, verification and documentation charges, EMI dishonor charges, foreclosure charges, etc. This tax adds an extra cost to your personal loan. However, the principal amount and the interest paid are not subject to GST.

Let’s take an example - You have applied for a personal loan of Rs 5 lakh from HDFC Bank. The bank charges a processing fee of Rs 6,500. The GST on the processing fee would be Rs 1,170 (18% of Rs 6,500). The total processing fee you would have to pay would be Rs 7,670.

How to Calculate the Actual Cost of a Personal Loan?

To accurately understand the true cost of a personal loan, it’s important to consider fees and charges along with the personal loan interest rate. The Annual Percentage Rate (APR) gives a clearer picture of the total borrowing cost by factoring in not only the interest but also additional charges like processing fees and verification costs.

What is APR?

APR (Annual Percentage Rate) is the annualized cost of borrowing, expressed as a percentage. It includes:

  • Interest rate
  • Processing fee
  • Documentation/administrative charges
  • Any other fees incurred during loan disbursal

You can use an APR calculator available online. Let’s say you availed a personal loan of Rs 5 lakhs @ 11% p.a. with a 5-year repayment tenure. The processing fee charged is 2% of the loan amount, which amounts to Rs 10,000. Therefore, its APR will be 12.89% and the total borrowing cost of your personal loan will be Rs 1.80 lakh.

Why Borrowers Must Be Aware of Personal Loan Charges

Most applicants focus only on the interest rate before applying for a personal loan. Overlooking associated charges can significantly impact the overall cost of the borrowing. Fees such as foreclosure penalties, processing charges and verification fees can quietly add up, turning what seems like an affordable loan into an expensive one.

Here’s how being aware of these charges can help you make more informed decisions:

  • Knowing charges levied by lenders can help you compare multiple personal loan offers effectively. Sometimes, a lower interest rate comes with higher hidden charges.
  • Awareness of fees allows you to calculate the accurate total cost of the loan and plan your budget accordingly.
  • Understanding pre-closure/fore-closure or part-payment charges can help you decide if early repayment is cost-effective.
  • Some fees, like processing fees, documentation or verification charges, are non-refundable even if your loan gets rejected.
  • Transparent knowledge of fees and charges makes the loan journey smooth, preventing disputes or dissatisfaction later.

How Can I Apply for a Personal Loan Online?

Get up to 40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Apply Now

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All Your Needs

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FAQs

A processing fee is a one-time fee charged by lenders to cover loan application processing and disbursal. The fee usually ranges from 0.5% to 4% of the loan amount.

Personal loan processing fee are usually non-refundable.

The processing fee usually ranges from 0.5% to 4% of the loan amount. Some personal loan lenders waive fees during the festive season and some set a maximum fee cap (for instance, HDFC Bank charges up to Rs 6,500 plus GST).

Banks charge a processing fee to recover the administrative and verification costs involved in the personal loan application process.

The processing fee is calculated as a percentage of the sanctioned loan amount.

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I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

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Exceptional guidance throughout the process

I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

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Very helpful and easy to reach

I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

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Reliable help when i needed it most

I am writing this email to express my sincere thanks for your excellent support and guidance on Paisabazaar. My experience was very smooth and satisfying because of your help. You explained everything clearly and made the whole process easy and comfortable for me. I truly appreciate your professionalism, patience, and quick response. I am very happy with the service and would definitely recommend to others because of the great support I received from you. Thank you once again

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DharmeshFeb 22, 2026

Committed support that made everything easy

I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

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BhupendraFeb 18, 2026

My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

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Lalit MaviFeb 12, 2026

Best Place for Taking Loans

I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

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Kokil BarnwalFeb 12, 2026

Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

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Riyaj AtarFeb 9, 2026

Apne higher education ke liye loan liya tha

Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

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Puja DanuJan 22, 2026

Sabse jada helpful log the yaha

Maine bht jagah try kiya tha personal loan ka, yaha try kiya toh helpful log mille. Har steps mai aram se samjhaya or usse muhje loan lene mai jda dikkat nhi aayi.

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Anuradha GuptaJan 21, 2026
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