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Loan

Processing Fees

Also known as: Application Fees, Loan Processing Charges, Administrative Fees

Upfront charges paid to the lender for processing and approving a loan application.

Detailed Explanation

Processing fees are one-time charges levied by lenders to cover the cost of loan processing, documentation, credit evaluation, and approval. Usually 0.5-2% of loan amount with minimum and maximum caps. Some lenders waive processing fees during promotional periods. GST is applicable on processing fees.