Personal Loan Fees & Charges
Processing fees, foreclosure and part-payment charges, penal charges and cancellation fees at 8 banks.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Processing fees range from nil (Bank of Baroda for government employees; IDFC FIRST on select amounts) to 5% of the loan (Kotak). Foreclosure charges range from zero to 5% of the outstanding principal. All fees attract 18% GST and must be included in the APR shown in your Key Facts Statement.
- Since 1 January 2024 RBI requires late-payment penalties to be levied as “penal charges”, not added to the interest rate, and they cannot be compounded.
- Charges not disclosed in the KFS cannot be levied without your explicit consent.
Lender-wise fees and prepayment terms
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Axis Bank Personal Loan | Up to 2% of loan + GST | Foreclosure 5% + GST; part-payment 3% or 2% depending on tenure (BankBazaar) |
| HDFC Bank Personal Loan | Up to ₹6,500 + GST | Foreclosure: 4% of principal outstanding up to 24 EMIs, 3% from 25 to 36 EMIs, 2% after 36 EMIs (+ GST) |
| ICICI Bank Personal Loan | Up to 2% of loan + GST | Foreclosure and part-payment: 3% of principal outstanding if the loan is up to 24 months old; nil after 24 EMIs |
| IDFC FIRST Bank Personal Loan (FIRSTmoney) | 0% – 3.5% of loan (incl. GST); zero on select amounts | Zero foreclosure charges |
| SBI Personal Loan (Xpress Credit) | 1.50% of loan (min ₹1,000, max ₹15,000) + GST | SBI’s RTXC page lists no prepayment penalty, but aggregators report 3% of the amount prepaid on fixed-rate Xpress Credit — confirm in your KFS |
| Bank of Baroda Personal Loan | Nil for government employees with BoB salary account; others 1% – 2% + GST (min ₹1,000, max ₹10,000) | Zero prepayment charges (ClearTax); the official page is silent. On the floating-rate option RBI rules bar prepayment charges anyway |
| YES Bank Personal Loan | Up to 2.5% of loan | Foreclosure up to 4% of outstanding principal; part-prepayment allowed after 12 EMIs |
| Kotak Mahindra Bank Personal Loan | Up to 5% of loan + GST | Foreclosure 5% of outstanding principal + GST (BankBazaar) |
Other charges
| Charge | Examples |
|---|---|
| Penal charge on late EMI | SBI: 2.40% p.a. on the irregular amount up to 60 days, 5% p.a. beyond; ICICI: 5% p.a. on the overdue EMI |
| Cancellation after cooling-off | ICICI Bank: ₹2,500 |
| EMI / mandate bounce | Flat fee per bounce as per the lender’s schedule |
| Stamp duty | As per state law, on the loan agreement |
| GST | 18% on processing, foreclosure and other service charges |
Fee impact on APR
Fees are deducted from the amount you receive, but you still pay EMIs on the full loan. That raises your real cost — the Annual Percentage Rate (APR) that the Key Facts Statement must show.
| Processing fee | Fee incl. 18% GST | Amount credited | Approx. APR |
|---|---|---|---|
| No fee | ₹0 | ₹5,00,000 | 11.00% |
| 1% + GST | ₹5,900 | ₹4,94,100 | 11.52% |
| 1.5% + GST | ₹8,850 | ₹4,91,150 | 11.78% |
| 2% + GST | ₹11,800 | ₹4,88,200 | 12.05% |
| 3.5% + GST | ₹20,650 | ₹4,79,350 | 12.86% |
| 5% + GST | ₹29,500 | ₹4,70,500 | 13.69% |
₹5,00,000 at 11.00% for 5 years (EMI ₹10,871). APR here is the annualised internal rate on fee and interest only; the KFS may also include insurance or other third-party charges.
Frequently asked questions
Is the processing fee refundable if I cancel?
Under RBI’s digital lending rules a lender may keep a reasonable, disclosed one-time processing fee when you exit during the cooling-off period. Other refunds depend on the lender’s policy.
Can the bank change charges after sanction?
No charge that is not in your KFS or agreement can be levied without your consent, and waived charges cannot be levied retrospectively.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.