What are the Fee and Charges Incurred During Business Loan Processing?

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Those planning to take out a Business Loan must be aware of the fee and charges most financial institutions charge. Here is a list of some essential charges one must be ready to pay:




  • Processing Fee: This amount on a loan application includes the cost of checking the applicant’s business, CIBIL score, loan approval, and administrative charges.

  • Interest Rate: It is the cost the borrower pays to the lender to lend them their money for a particular period. It is a percentage of the principal amount distributed among the monthly EMIs one chooses using a Business Loan EMI calculator.

  • Foreclosure or Prepayment Charges: If the borrower decides to pay off the loan before the loan tenure, they must pay the foreclosure or prepayment charges.

  • Late Payment Charges: Borrowers pay this fee for delaying or missing their EMIs.


The financial institution will take these fees to process a Business Loan.

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