Loans

If you are eligible to get your loan, then bank or finance will deduct their processing fees from your loan amount before the disbursement to your bank account. In this deduction followings are counted in the processing fees.
Processing charges: At the time of processing a loan, a bank will be bearing some cost related to administration. This amount is quite small and often varies between 0.5% and 2.50%. Each banks and Finances have set up his own Processing fees system depends on loan type.
Verification charges: A bank will have to be assured about the loan repayment capacity of an individual before they actually disburse the loan. This charge has to be borne by the applicant of the loan as it is an additional cost for the bank.
Goods and Services Tax: For any additional service which is required by the loan applicant during the sanction of a loan or during the period of repayment of the loan, a small fee has to be borne by him/her against the service in the form of Goods and Services Tax or GST.
** In Home & Mortgage Loan, Commercial Vehicle Loan, etc heavy amount Loan, the processing fees is payable by client at the time of final loan processing by cheque or directly to bank account of bank and finance companies.