Hidden charges in any product are the biggest fear of the customer. No one wants to pay extra for the product after knowing the worth of it. And for a reputed seller, it becomes a mandatory task to manage the cost without adding any hidden charges. A personal loan is one of the quick processes where many fraud lenders are involved too. So for a legit lender, it becomes important to provide every possible detail to the customer about the personal loan and its charges.
Hidden charges involve:
1. GST with processing fee
The processing fee is the first payment after the approval of the Personal Loan Eligibility criteria. And in this many lenders add GST and some lenders don’t charge at all. This can be called extra hidden charges as well because you are asked to pay the processing fee only.
2. Prepayment fee
If you are choosing to pay for the loan before the time then it can make you pay a little extra because EMIs are sources of income for the banks and you are just taking their one income source.
3. Annual Interest Rates
Due to flexible tenor selection, you will be asked to pay a low-interest rate if you choose a long tenor and if you choose a smaller tenor then you will have to pay extra rates.
4. Foreclosure charges
Foreclosure is the demand of every borrower, everyone just wants to get rid of the personal loan because of its high expenses, and choosing the foreclosure is like cutting 1 source of income for the bank so this is why personal charge for foreclosure. But you don’t need to worry because Standard Chartered Bank Personal Loan foreclosure charges are at most trust rates.
5. Late Payment charges.
If you are failing to pay the EMI amount or you are paying the EMIs late then banks have the right to charge some amount extra on your current EMIs. These late payments also can affect your credit score and will get you below the CIBIL score of 750. There will be some warning will be given first then charges will start to deduct.
So to minimize and take care of your expenses you can choose the personal loan EMI calculator too for the calculation of your expenses and debts. It is the best tool to know about the expense of someone which he will be paying for the selected tenor. Now, this tenor can range from 12 months to 60 months, and in between these you have to pay monthly debts in the form of EMIs so just for the expenses of a minimum of 12 months you have to calculate. You can find the EMI calculator tool on the lender’s website and also on their respected mobile application.
