When you decide to take an instant personal loan, it is important that you calculate the total loan cost.
The total cost of the loan will depend upon your credit score. With a good credit score, you can avoid all the hidden charges and get a low rate of interest as well with your personal loan apply.
Processing Fees
A processing fee is one of the most common charges that is usually hidden by the loan provider while taking an instant personal loan. The processing fee is paid when the loan approval is given and the personal loan is processed for disbursement and sanction. It can be directly deducted from the principal loan amount or it can be charged upfront by the loan provider directly.
Cancellation Charges
Cancellation charges are very common for any kind of service that you take. When you apply for a particular instant personal loan but cancel the request after it has been sanctioned, you need to pay the cancellation charges. Cancellation charges are present in some financial institutions.
Prepayment penalties
If you have an existing instant personal loan, you need to pay the loan back to the loan provider within the fixed loan tenure. However, there are individuals that decide to clone before the loan tenure ends. If you decide to pay your loan before the loan tenure, you need to pay the prepayment charges.
Late payment charges
This is something that is very evident when you have an existing instant personal loan. When you miss or delay your loan repayment each month, you not only damage your credit score but also pay late payment charges. When you make a payment after the due date of the instant personal loan, the bank or non-banking institutions will charge you a certain percentage of the amount.
Effective interest rates
The rate of interest is not a hidden charge but definitely a compulsory payment. When you take an instant personal loan from a bank or non-banking financial institution, you need to pay a fixed rate of interest. The effective rate of interest on instant personal loans can range anywhere from 10% to 33%.
Charges for duplicate documentation
Banks and non-banking financial institutions would always charge a fee to reissue loan-related documents. It can include financial statements, no-objection certificates, credit score reports, and various personal or financial documents.
Wrapping up
For a smooth personal loan apply process for an instant personal loan, visit the Clix Capital website. It is important to use a personal loan EMI calculator to calculate the total loan cost.
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