Personal loans: From processing fee to prepayment penalty, a list of charges associated with this type of credit

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₹200 to ₹500. Moreover, the charges may vary from one lender to another.

Certain banks enforce a lock-in period ranging from 6 months to a year, whereas others permit pre-closure even after the first EMI has been debited. Some banks may impose restrictions, specifying that only your funds can be used for pre-closure, excluding balance transfer cheques from other banks.

Additionally, banks might offer pre-closure at no cost or impose a pre-closure fee (ranging from 2-5% of the amount being closed). It is advisable to seek clarifications from a loan advisor or the banks regarding these factors before signing the loan document.

To initiate the loan application process, individuals are required to submit identity proof, residence proof, the latest three months’ salary slips, the preceding six months’ bank statements, and a passport-sized photograph. Additional documents, such as Form 16, an appointment letter, a company ID card, and the relieving letter from the previous employer, may be requested by banks at a later stage.