Personal Loan Fees & Foreclosure Charges

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Personal Loan Processing Fees and Charges

While Personal Loans offer flexible solutions by providing quick access to capital, there are fees and charges that come along with them. These include processing fees, prepayment penalties, and late payment fees. Responsible borrowers must be aware of them before applying for a loan.

Charge type	Applicable amount
Personal loan interest rate (Fixed)	Starting from 9.99% p.a.
Loan processing fees (Non Refundable)	Up to 5% of the final loan amount plus taxes.
Loan processing fees (Non Refundable)	Will be deducted from the loan amount at the time of disbursal.
Stamp Duty Charges	As per the respective State’s Stamp Act
Penal charges on Overdue Amount (excluding charges)	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount (excluding charges)
Interest On Overdue amount (excluding charges)	EMI standing unpaid on respective due dates shall attract interest on overdue amount (excluding charges) @ contractual rate for the number of days of delay in receipt of EMI.
EMI dishonour/Bounce charges	₹750 per instance (Inclusive of applicable taxes)
Swap charges, i.e. charges for change in repayment mode, repayment instrument or EMI date	₹500/- plus taxes per instance
Lock-in Period for foreclosure and Part payment:	No lock-in period for Kotak Personal loans post servicing of first EMI.
Foreclosure/Part payment charges	Up to 3 years - 4% + taxes on outstanding principal/part payment amount
Foreclosure/Part payment charges	After 3 years - 2% + taxes on outstanding principal/part payment amount
Part payment clause	Allowable limit is up to 20% of Principal loan outstanding
	It is allowed only once in a financial year
	The effect of the part payment can be given on either EMI or Tenure
Physical SOA or Amortization schedule	Once in a year- No charge.
Physical SOA or Amortization schedule	Post that - ₹200 plus taxes per request
Legal charges	at actuals
Cancellation charges for Digitally availed loans within cooling off period (Cooling off period : Transaction+3days)	NIL
Cancellation charges for Digitally availed loans after cooling off period (Cancellation can be done only before first EMI date)	₹1000.00 plus Taxes or 1% of principal outstanding plus Taxes, whichever is higher
Cancellation charges for Non-Digital loans availed through offline channels (Cancellation can be done only before first EMI date and No cooling off period applicable)	₹1000.00 plus Taxes or 1% of principal outstanding plus Taxes, whichever is higher
Disclaimer: The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website.

What are the Processing Fees and Charges for Personal Loans?

A Personal Loan processing fee or Personal Loan charge is levied as a percentage of the loan amount to cover the cost of sanctioning a loan. This is one of the most basic fees charged while taking out a loan. These charges vary depending on the amount you withdraw, the financial institution you choose, the loan term and few others.

Typical Fees and Charges on Personal Loans

Other than processing fees, Personal Loans come with other charges that borrowers should be aware of. This will help them manage their finances effectively and avoid unnecessary expenses. Once the documents required for a Personal Loan are submitted, they will be processed and disbursed. A few common fees associated with Personal Loans include:

Loan Processing Fee: Loan processing fees, non-refundable, are up to 5% of the final loan amount plus taxes. This amount is deducted from the loan disbursement, not requiring a separate payment. It covers administrative costs associated with processing the loan application.
Pre -Part payment Charges:
No lock-in period for Kotak Personal Loans post servicing of first EMI. It is allowed only once in a financial year. Allowable limit is up to 20% of Principal loan outstanding. The effect of the part payment can be given on either EMI or Tenure. Below charges are applicable basis tenure:
- Up to 3 years : 4% + taxes on outstanding principal/part payment amount
- After 3 years : 2% + taxes on outstanding principal/part payment amount
Repayment Mode Swap Charges: These charges amount to ₹500 + Taxes per transaction. This fee applies each time there is a change in the repayment mode.
EMI Bounce Charges: These charges stand at Rs. 750 per instance (Inclusive of applicable taxes). This fee is applicable each time an Equated Monthly Installment (EMI) payment fails or bounces.

A Personal Loan Near You

Choosing the right financial institution makes securing a Personal Loan a lot easier. Search for the nearest Kotak Mahindra Bank to apply for a Personal Loan.

Don’t forget these factors while selecting a Personal Loan:

Check the loan amount
Compare the interest rate
Read the terms and conditions
Check the processing fee

Easy Credit Line

Easy Credit Line is a credit facility offered by Kotak Mahindra Bank which allows you to overdraw your account balance for meeting your financial needs. This loan is allowed up to a specified limit depending on your account balance.

Charges specific to Kotak Easy Credit Line facility	Applicable amount
Interest rate	13.50% per annum onwards
Processing fees	Up to 5% of the final loan amount plus taxes
Penal Charges on Overdue/Overutilised amount	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount plus applicable taxes not exceeding Rs. 5 lac (plus applicable taxes) in a calendar month
Foreclosure Charges	Up to 3 years - 4% + taxes on outstanding amount
Foreclosure Charges	After 3 years - 2% + taxes on outstanding amount
Non-utilization charges	If average utilization of the facility is below 25% of drawing limit in the account, then Charges at 0.40% p.a. will be applied on the unused limit + applicable taxes
Repayment account swap charges	Rs.500 + taxes per swap
Account statement charges	Physical account statement: Rs.200 + taxes per instance (can be availed from any Kotak branch)
Account statement charges	Please note that account statement can be downloaded for free via net banking/mobile banking.
Bounce/dishonour charges	Rs. 750 per instance (Inclusive of applicable taxes)
Disclaimer: The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website

GSFC applicable only for Standard Chartered Bank Personal Loan Migrated Customers

Charge type	Old GSFC - Standard Chartered Bank	Revised Standard Chartered Bank Personal Loan Fees and Charges
Charge type	Applicable amount	Applicable amount
Personal loan interest rate (Fixed)	10.25% to 23% per annum	No change
Loan processing fees (Non Refundable)	up to 2.25% of loan amount	No change
Stamp Duty Charges	-	No change
Penal charges on Overdue Amount (excluding charges)	2% per month overdue Charges on the principal along with interest	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum plus applicable taxes (to be charged for actual no. of days) on overdue amount (excluding charges)
EMI dishonour/Bounce charges	Rs 495 + GST	Rs.495 + applicable taxes
Swap charges, i.e. charges for change in repayment mode, repayment instrument or EMI date	INR 500 + GST	INR.500 + applicable taxes
Lock-in period	12 months lock-in period	No change
Foreclosure charges	Number of EMIs paid Pre-closure charges on principal outstanding	Lock-in period [12 months] : Not allowed
	0 - 12 Not Allowed	Post Lock-in period : 3% + GST on outstanding principal.[If any other foreclosure/pre-closure charges committed in writing via a Sanction letter or in the Agreement letter like NIL, 1% or 2% then such an event whichever is lower shall be applicable]
	13 to 24 5% + GST
	25 to 36 4% + GST
	>36 3% + GST
Part pre-payment charges	Number of EMIs paid Pre-closure charges on principal outstanding	Part-Prepayment is allowed up to 25% of Principal loan outstanding. It is allowed once a year. Charge per instance of part payment is INR 500 plus taxes
	0 - 12 Not Allowed
	13 to 24 4% + GST
	25 to 36 3% + GST
	>36 2% + GST
Physical SOA or Amortization schedule	No charge	No change
Interest On Overdue amount (excluding charges)	EMI standing unpaid on respective due dates shall attract interest on overdue amount (excluding charges) @ contractual rate for the number of days of delay in receipt of EMI.

Frequently Asked Questions

Can I pay EMI after the due date?

Yes. Most financial institutions allow EMI payments after the due date. Timely EMI payments are advised to avoid late fees and maintain a good financial health. Late payments also impact your CIBIL.

1. Facility Rate of Interest (FRI): Unpaid EMIs attract FRI charges at the contractual rate for the number of days delayed. If the FRI charges are not received before the next EMI date, they will be adjusted from the next EMI received.

2. EMI Dishonour/Bounce Charges: ₹750 per instance (inclusive of applicable taxes).