Personal loan processing fees and foreclosure charges
What each lender charges to set up a loan and to repay it early, in rupees with GST, from each lender's own schedule of charges.
28 lenders · last verified 21 Oct 2026 · true cost of ₹1 lakh
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Lenders we compare
| Lender | Processing fee | Max fee on ₹1 lakhincl. 18% GST | Max fee on ₹5 lakhincl. 18% GST | Closing early | Part-prepayment | Apply |
|---|---|---|---|---|---|---|
| IDFC FIRST Bank | 0% to 3.5% of the loan amount + GST; the bank's pages don't agree on the exact fee, so check the Key Fact Statement | ₹4,130 | ₹20,650 | Nil (a sanction letter is needed to foreclose) | Not allowed | Apply nowVia our referral partner. We may earn a commission. |
| Poonawalla Fincorp | Up to 4% of the sanctioned amount + applicable taxes, non-refundable | ₹4,720 | ₹23,600 | 4% of the amount prepaid + taxes before you've paid 6 EMIs. After 6 EMIs it's free if you pay from your own money, or 4% + taxes if you pay with another loan or a balance transfer. Poonawalla also shows different, tiered charges elsewhere, so check the Key Fact Statement | Same terms as foreclosure; Poonawalla doesn't publish a separate part-payment charge. | Apply nowVia our referral partner. We may earn a commission. |
| InCred | Up to 5% of the loan amount (includes loan origination costs) + applicable taxes | ₹5,900 | ₹29,500 | Up to 5% + taxes to close the loan after 6 months from disbursal, on loans taken directly from InCred. Loans arranged through InCred's partners can cost up to 6% + taxes. | Same as foreclosure: up to 5% + taxes after 6 months from disbursal, or up to 6% + taxes on loans arranged through InCred's partners. | Apply nowVia our referral partner. We may earn a commission. |
| KreditBee | Up to 4.7% of the loan amount + GST | ₹5,546 | ₹27,730 | Up to 5% of principal outstanding + GST | Up to 5% of principal prepaid + GST | Apply nowVia our referral partner. We may earn a commission. |
| Freo | From 2% of the amount + GST, charged at disbursal. Freo's example loan also charges a ₹999 + GST line setup fee, paid upfront | – | – | Up to 3–4% of the outstanding amount in certain cases; no lock-in, can be closed any time | Not published | Apply nowVia our referral partner. We may earn a commission. |
| Kissht | 3% including GST in Kissht's example loan; no fee range is published | – | – | Depends on which partner lends: 4% + taxes on the principal and interest you close early with one partner (nothing during the cooling-off period), or 3.39% of the principal outstanding + taxes with another. The Key Fact Statement shows which applies | Not published | Apply nowVia our referral partner. We may earn a commission. |
| lendingplate | 1% to 5% of the loan amount + GST, deducted from the sanctioned amount (larger loans get lower fees) | ₹5,900 | – | 5% if closed before the first EMI due date; nil on or after the first EMI due date | Not allowed under its published terms, though some of its pages say part payments are possible. Check the Key Fact Statement | Apply nowVia our referral partner. We may earn a commission. |
| Moneyview | 2% to 8% of the approved loan amount, deducted from the loan at disbursal; Moneyview doesn't say whether GST is added | ₹9,440 | ₹47,200 | No charge, but only after a lock-in: not allowed on loans of up to 6 months, allowed after 6 EMIs on 7–18 month loans and after 12 EMIs on longer ones. Moneyview also mentions a shorter 3-EMI minimum, so check the Key Fact Statement. | Not allowed. | Apply nowVia our referral partner. We may earn a commission. |
| FatakPay | 2% to 6% depending on the plan: 2% on FatakPrime, 5% on FatakPlus and 6% on FatakLite. FatakPay doesn't say whether GST is added. | ₹7,080 | ₹35,400 | Not published | Not published | Apply nowVia our referral partner. We may earn a commission. |
| Unity Small Finance Bank | Up to 4% of the loan amount + GST (bank's own personal loans); up to 5% + GST for loans made through digital lending partners | ₹4,720 | ₹23,600 | 4% + GST of principal outstanding (bank's own personal loans); up to 3% + GST on digital-lending personal loans. Nil cancellation charge within the cooling-off period, but interest and upfront fees are kept | 4% + GST of the principal being repaid | Apply nowVia our referral partner. We may earn a commission. |
| Finnable | Up to 5% + GST, usually deducted from the loan at disbursal | ₹5,900 | ₹29,500 | Allowed after 6 months, with a preclosure charge + GST; Finnable doesn't publish the percentage. Closing the loan in the first 6 months is discouraged. | Not allowed. | Apply nowVia our referral partner. We may earn a commission. |
| Hero FinCorp | At least 2.5% of the loan amount + GST, deducted at disbursal; no maximum is published | – | – | Up to 5% + GST on outstanding principal | Unclear: Hero FinCorp's pages don't agree on whether you can part-prepay or what it costs. Check the Key Fact Statement. | Apply nowVia our referral partner. We may earn a commission. |
| Prefr | 3% of the loan + 18% GST, deducted at disbursal, in Prefr's example loan; no fee schedule is published | – | – | Not published | Not published | Apply nowVia our referral partner. We may earn a commission. |
| Ring (Pay with Ring) | Up to 7% of the loan amount + GST on loans from Si Creva; other partner lenders set their own fees | ₹8,260 | ₹41,300 | Allowed after the 3-day cooling-off period. For Si Creva loans, up to 7% of the amount foreclosed + GST. Other partner lenders apply their own charges, shown in the Key Fact Statement. Closing inside the cooling-off period can cost up to 100% of the processing fee. | Up to 7% of the amount prepaid + GST for Si Creva loans; available only if the financier allows it. | Apply nowVia our referral partner. We may earn a commission. |
| BharatPe | 2.5% of the loan amount + GST in BharatPe's example loan; no fee range is published | – | – | Not published | Not published | Apply nowVia our referral partner. We may earn a commission. |
“Max fee” uses each lender's highest published fee %, plus 18% GST; “–” means the % isn't published or the lender doesn't lend that amount. Fees and charges are from each lender's own pages. We compare lenders available through our partner; the order follows the lowest published starting rate.
Big banks (we don't arrange these loans)
| Lender | Processing fee | Max fee on ₹1 lakhincl. 18% GST | Max fee on ₹5 lakhincl. 18% GST | Closing early | Part-prepayment |
|---|---|---|---|---|---|
| Axis Bank | Up to 2% of the loan + GST | ₹2,360 | ₹11,800 | Charged on the principal still owed, + GST. Loans under ₹10 lakh: 3% until 36 EMIs are paid, 2% after. Loans of ₹10 lakh or more: nothing if you close with your own money after 12 EMIs (3% before that); 3% or 2% as above if you close with borrowed money. No lock-in period. Cancelling more than 3 days after disbursal counts as foreclosure. | Free for up to 25% of the principal owed each year after 12 EMIs, with at least 12 EMIs between part payments. Otherwise 3% of the amount prepaid until 36 EMIs are paid and 2% after, + GST. No lock-in period. |
| Bajaj Finserv | Up to 4.13% of the loan including GST (3.5% + 18% GST). Flexi variants also pay a one-time Flexi facility charge of ₹1,999 to ₹18,999 including GST, and an annual maintenance charge of up to 0.295% (Flexi Dropline) or up to 0.472% in the interest-only period then 0.295% (Flexi Hybrid) of the dropline limit, including GST. All variants may also pay a credit guarantee scheme fee of up to 1.18% a year of the loan including GST, renewed on the outstanding amount for up to 3 more financial years. Stamp duty as per your state; all upfront charges are deducted from the amount paid out. | ₹4,130 | ₹20,650 | Up to 4.72% including GST (4% + 18% GST) of the outstanding loan on the term loan, or of the dropline limit as per the repayment schedule on the Flexi variants, on the date you close the loan. | Term loan: up to 4.72% including GST (4% + 18% GST) of the principal you prepay. Flexi Dropline and Flexi Hybrid: no part-prepayment charge, and you can withdraw again within your limit. |
| Bank of Baroda | Nil for government employees with a Bank of Baroda salary account. For everyone else, 1% to 2% of the loan + GST, minimum ₹1,000 and maximum ₹10,000. | ₹2,360 | ₹11,800 | No pre-closure charge, as published by the bank. The page doesn't say whether this also covers the fixed-rate option; the bank's separate digital personal loan charges 3% + GST on fixed-rate loans prepaid in the first 36 months. | Not published |
| Canara Bank | 0.5% of the loan + GST, minimum ₹1,000 and maximum ₹5,000 | ₹590 | ₹2,950 | Nil | Nil |
| HDFC Bank | Up to ₹6,500 + GST, a flat amount rather than a percentage of the loan. Not refunded if you cancel. | – | – | A percentage of the principal still owed, + GST: 4% if you close within the first 24 EMIs, 3% after 24 and up to 36 EMIs, and 2% after 36 EMIs. | Allowed after the first EMI, up to 25% of the principal owed, once a financial year and twice over the whole loan. The charge on the amount prepaid is 4% up to 24 EMIs, 3% from 24 to 36 EMIs and 2% after 36 EMIs, + GST. |
| ICICI Bank | Up to 2% of the loan + GST. Not refunded if you cancel. | ₹2,360 | ₹11,800 | 3% of the principal still owed + GST, and nothing once you've paid 24 EMIs. You can close the loan after paying at least one EMI. | 3% of the amount prepaid + GST while the loan is under 24 months old, and nothing after that. For loans from 1 Jan 2026, you can part-pay any number of times a year, at least one EMI's worth each time. |
| IndusInd Bank | Up to 3.5% of the loan + GST. For a limited period the fee is 2% on applications started and completed on the bank's own online loan channel (not for pre-approved offers). | ₹4,130 | ₹20,650 | Allowed after the first EMI. 5% of the outstanding principal + GST if you close after 1 to 11 EMIs, and 4% + GST after 12 EMIs. In the first 7 days after disbursal you can exit by repaying the principal and interest for those days, but the processing fee is not refunded. | Not published |
| Kotak | Up to 5% of the loan + GST, deducted from the amount paid out; stamp duty as per your state | ₹5,900 | ₹29,500 | 4% + GST of the outstanding principal in the first 3 years, 2% + GST after that; allowed once the first EMI is paid | Allowed after the first EMI, up to 20% of the principal owed, once a financial year; charged at 4% of the amount part-paid in the first 3 years and 2% after, + GST. |
| PNB | 1% of the loan + GST, plus a documentation charge of ₹270 (loans up to ₹2 lakh) or ₹450 (above ₹2 lakh) + GST; no documentation charge for defence personnel | ₹1,180 | ₹5,900 | Nil | Nil |
| SBI | Up to 1.5% of the loan + GST, minimum ₹1,000 and maximum ₹15,000. Defence employees and Platinum or Rhodium salary package customers pay no fee. Government employees, and borrowers with a CIBIL score of 800 or more, pay half: 0.75% + GST, within the same ₹1,000 to ₹15,000 limits. | ₹1,770 | ₹8,850 | 2% of the amount prepaid when you close the loan early. The charge is waived for defence employees closing after 6 months, for government and corporate employees closing after 3 years (or after 6 months if the loan is closed with a new SBI personal loan), and for Platinum and Rhodium salary package customers closing after 6 months. | 2% of the amount prepaid. If you take the overdraft version of the loan, you can deposit extra money in the loan account and withdraw it again, within the drawing power. |
| Tata Capital | Up to 5% of the loan + GST, plus a documentation charge of up to ₹1,999 + GST | ₹5,900 | ₹29,500 | 6.5% of the principal outstanding within 12 months of the first disbursement, 4.5% after that, + GST. No charge if you repay within the 3-day cooling-off period. | Free for up to 25% of the disbursed amount over the whole loan; beyond that, 6.5% of the amount part-paid within 12 months and 4.5% after, + GST. |
| Union Bank | 1% of the loan + GST, minimum ₹1,000 and maximum ₹10,000 (from 20 Oct 2026). No processing fee on the government employee, professional and home-loan-borrower schemes. Credit life insurance is compulsory, and its premium can be added to the loan. | ₹1,180 | ₹5,900 | No foreclosure charge. The bank's rules exempt floating-rate loans to individuals for non-business use and fixed-rate loans up to ₹50 lakh. | No part-prepayment charge, under the same rules as foreclosure. |
| YES BANK | Up to 2.5% of the loan + GST, plus stamp duty as per state law | ₹2,950 | ₹14,750 | Allowed only after 12 EMIs: 4% of the principal outstanding in EMIs 13–24, 3% in 25–36, 2% in 37–48 and nil after 48, + GST | Allowed only after 12 EMIs, once a financial year and twice over the loan: 3% of the amount part-paid + GST, up to 20% of the principal outstanding in months 13–36 and 25% after |
From each bank's own schedule of charges. We don't arrange loans from these banks; see each bank's page for its rates.
Related
- True Cost of a Personal Loan: Fees and APRWhat a personal loan really costs: flat vs reducing rate, processing fee and GST, APR in the Key Fact Statement, foreclosure and penal charges.
- True cost of a ₹1 lakh loanInterest, fee and GST at every lender
- EMI calculator with prepaymentSee what part-paying saves
Questions people ask
Is GST charged on a personal loan processing fee?
Yes. GST at 18% is added to the processing fee, and lenders usually take both out of the loan before it reaches your account. A 2% fee on ₹1 lakh is ₹2,000 plus ₹360 GST, so you receive ₹97,640 and repay ₹1 lakh plus interest.
What are foreclosure charges on a personal loan?
A fee for repaying the whole loan before the tenure ends, usually a % of the outstanding amount plus GST, and often only after a lock-in of a few EMIs. The table shows each lender's published rule. The Key Fact Statement you get before signing states the exact charge for your loan.
Can I avoid the processing fee?
Some lenders waive or cut it in offers, and banks sometimes charge less for their own salary-account customers. Compare the APR in each offer's Key Fact Statement: it adds the fee to the interest, so two loans with the same rate but different fees show different APRs.
Is part-prepayment cheaper than foreclosure?
Often, because some lenders allow part-payments free or at a lower charge, and paying down early cuts the interest you pay. Check the lender's rule in the table and use the EMI calculator's prepayment option to see the saving.
CreditParakh is not a bank or lender and doesn't guarantee approval. Approval is at the bank's or lender's discretion.