Top 6 banks charge THIS processing fee on their personal loans. See details here | Mint

If you are applying for a personal loan, it is advisable to compare the different charges levied by banks. Although a loan becomes lucrative or costlier based on the interest rate it charges, it is recommended to compare processing fee or charges as well.

The lower the charges, the cheaper the loan. And higher the charges, the more expensive the loan. One should note that processing charges are not meant to be paid separately. These are simply deducted at the time of disbursal of money.

Here, we share the processing fee levied by banks on their personal loans. One should remember that these charges are subject to change, and they keep changing from time to time. Therefore, one should speak to a bank representative before taking a final call.

These are the processing charges levied by banks:

HDFC Bank: The largest private sector bank charges upto ₹6,500 plus GST as processing charges on the personal loan application.

ICICI Bank: This private sector bank charges up to 2 percent processing charges. In other words, if you seek a loan of ₹one lakh, you need to pay upto ₹2,000 towards processing of loan.

Kotak Mahindra Bank: This private sector bank chares an amount which may go upto 5 percent of loan amount.

Axis Bank: Processing fees levied by Axis Bank are upto 2 percent, mentions the bank’s official website.

State Bank of India: As of now, State Bank of India (SBI) charges zero processing fee until Jan 31. After this, the processing charges would go upto 10,000

Bank of India: This public sector bank charges 1 percent of loan towards processing, which may go up to ₹10,000.