It is always good to know what a loan costs before applying for it. Your EMI is a part of what you will pay. Knowing what processing fees and other charges you will accrue on your personal loan will help you plan better. This applies to personal loans for travel too.
Listed below are some of the charges applicable to a Bajaj Finserv Personal Loan for Travel:
1. Processing fees
This is the fee charged for processing your application. It covers all the costs involved in sanctioning your loan. It includes everything from the cost of undertaking the verification process to actual administrative expenses.
It is usually 4% of the overall loan amount plus taxes. You have to pay this fee at the time of signing the loan agreement.
2. Interest rate
This is the interest you pay in exchange for the funds lent to you. Essentially, it is the cost of availing of credit. Your interest rate starts from 13% and must be paid every month as a part of the EMI.
Additional read: The ultimate guide to getting a personal loan for travel
3. EMI bounce charges
This is a penalty charged apart from the EMI if your instalment cheque bounces. It is usually between Rs. 600 to Rs. 1,200 per bounce plus taxes. Hence, it is vital always to ensure enough balance the bank account you use to pay your EMI.
4. Penal interest rate
If the borrower fails to make payments on time, a penal interest rate will be applicable. This is a penalty for not having made regular payments. This fee is 2% to 4% per month on the monthly instalment outstanding.
5. Foreclosure charges
Foreclosure often puts the lender’s interest at risk. So, this fee is sometimes charged when an applicant wants to foreclose the loan before the tenor lapses. This fee is usually around 4%, excluding the taxes that apply to the principal.
Additional read: 5 essential things to know before taking a personal loan
6. Part-prepayment charges
When an individual makes a part-prepayment towards the personal loan, the lender loses out on interest. This is usually at the rate of 2%, exclusive of taxes, as a cost if you want to prepay your loan partially.
7. Annual maintenance charges
As the name suggests, this is a charge levied for maintaining your account. These charges are at 0.25% for a Flexi personal loan levied annually.
Knowing about these charges in advance can help you plan your holiday without any surprises. Visit your dream destination with a travel loan from Bajaj Finserv. It offers you a range of benefits, such as flexible repayment tenors and nominal interest rates.
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