7 essential personal loan charges you should keep in mind

Prepayment charges

You can make prepayments towards your principal and bring down the loan amount and also the value of subsequent EMIs. But, lenders often levy a fee on prepayments to make up for the loss of interest. This can amount to 2% of the amount you prepay and is subject to taxes.

Foreclosure charges

Similarly, lenders charge you a fee in case you decide to foreclose the loan before the tenor lapses. Typically, you can foreclose your loan after one month from the date of disbursal and you will have to pay 4% as a foreclosure charge on the outstanding amount.

It is important to note that these charges vary from lender to lender. While some lenders will implement all of these charges and also charge you to view interest statements, for example, others will only charge a few. So, select a lender that levies the least charges to get more from your loan.