Understanding the fees and charges on your doctor loan

institutions charge you a fee for providing you these details in the form of a hard copy. The fee covers charges incurred by the lender while delivering these hard copies to you. As a thumb rule, look for lenders who don’t levy this charge.
When you take a Loan for Doctors from Bajaj Finserv, you don’t have to pay any statement charges. You can simply log on to the secure Bajaj Experia customer portal with your username and password and access all statements and loan details online at your convenience.

EMI bounce charge

Just like a bounced cheque incurs a charge, a bounced EMI chequeattracts the same penalty. The average charge for a bounced EMI cheque is around Rs.2,500 per bounce. So, while you should pick a lender with low charges, it is more important to ensure that you have the necessary means to pay your EMIs month on month.Maintaining a dedicated account will help you do this.

Penal interest

When you default on an EMI payment or the loan itself, you have to pay a penal interest. This is over and above the interest rate of the loan, which is the cost at which you receive funds from a lender.The penal interest that you have to pay is around 2% per month.

Foreclosure charges

Foreclosing a loan involves making a single payment to repay the loan before the tenor lapses. However, this can put the lender’s interests at risk. So, most lenders levy a foreclosure charge. This is around 4%, excluding taxes, on the outstanding loan amount.

Prepayment charges

Prepayment is similar to foreclosure, as it involves making payments towards the principal to lower your balance EMIs.

Making prepayments affects the lender as well and so, you may have to pay a prepayment charge. When you take a loan from Bajaj Finserv, however, prepayment charges are either nil or low to help you clear your loan quicker. Understanding these charges will help you calculate your total outflow towards the loan more accurately, and be prepared when it is time to make payments.