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    Avoid Personal Loans With Advance Emis: Lender Interest Rate (%) Processing Fee (%) Post Prepayment/ Foreclosure Charges

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    Rajesh Kumar

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    Avoid Personal Loans With Advance Emis: Lender Interest Rate (%) Processing Fee (%) Post Prepayment/ Foreclosure Charges

    Uploaded by

    Rajesh Kumar
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    Original Title

    Avoid Personal Loan

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    Avoid Personal Loans With Advance Emis: Lender Interest Rate (%) Processing Fee (%) Post Prepayment/ Foreclosure Charges

    Uploaded by

    Rajesh Kumar

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Avoid Personal Loans with Advance EMIs

    Advance EMI reduces the loan amount disbursed, but the borrower pays interest on the higher amount.

     Personal loan can be a savior in an emergency, and these days it is easier to get one. Most banks
    provide a pre-approved personal loan, which customers can avail with a few clicks, within seconds.

     But a personal loan comes with a lot of restriction. Lenders also find ways to charge borrowers a
    higher interest rate than the one mentioned in the contract.

     Many lenders don’t allow part-payment or foreclosure for the first 12 months of the tenure. After
    that, they charge between 2 percent and 5 percent of the part payment amount or the outstanding
    principal.

     By wary of banks that charge advance equated monthly installments (EMI). Advance EMIs are
    deducted from the loan amount sanctioned. It essentially means, the bank has reduced the loan
    amount but charged interest on the full amount.

     Similarly, the bank may keep rate low but processing fee high, which increases the overall interest
    rate.

     Before taking a personal loan, always check if there are other ways you can raise money at cheaper
    rates, such as via top-up home loan, overdraft facility on a fixed deposit, and so on.

    Lender Interest Rate (%) Processing fee (%) Post prepayment/


    Foreclosure charges
    State Bank of India 11.05%-15.45% Upto 1.00 Up to 3%
    Bank of Baroda 11.75%-16.75% INR 1K-INR 10K NIL
    Union Bank of India 10.70%-14.70% Upto .50 NIL
    HDFC Bank 11.49%-21.50% Upto 2.50 After 12 EMIs:2%-4%
    Axis Bank 11.25%-24% Upto 20 NIL
    RBL Bank 11.99%-23% Upto 3 After 12 EMIs: 3%-5%
    Citi Bank 11.49%-14.50% Upto 3 After 12 EMIs: Upto 4%
    Indusind Bank 12%-19% Upto 2.5 After 6/12 EMIs: 4%
    ICICI Bank 11.25%-15.99% Upto 2.25 Foreclosure Charges;5%

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