How to Claim Zero Processing Fees on an Instant Personal Loan Application?

Instant personal loan is an easy option to get funds for urgent financial needs. Be it home renovations, wedding expenses, travel or unexpected medical bills, a personal loan is a good option to opt for during such times. While understanding the interest rate and loan tenure is important when applying for a personal loan, it is equally important to be aware of additional charges like processing fees. Each lender charges different processing fees, but at times, you can claim zero processing fees on an instant personal loan. This article explores processing fees and how you can claim zero processing fees for personal loan. 

What is the Processing Fee in Personal Loans? 

Processing fee is the percentage of loan amount typically between 0.5% – 3% of the loan amount. Every bank sets its own processing fee. Borrowers can either pay this amount upfront or have it deducted from the loan amount upon disbursal.

The Processing fee is a one-time fee that the borrower must pay. The bank charges some amount as administrative fees to process and sanction the loan which includes the cost of credit checks and evaluation of loan. Typically, the processing fee is non-refundable. If you choose not to proceed with the loan after approval, the processing cost is still charged by the bank. 

How to Avoid Processing Fees on Personal Loans

If you want to avoid or reduce processing fees on personal loans, here are our tips: 

1. Negotiate with the lender: If you have a strong relationship with the lender or a good credit history, you can negotiate to reduce or waive the processing fees.
   
2. Check for promotional offers: The lender may have a promotional offer or special discount during the festive season on processing fees. Keep an eye on such offers if you are applying for a personal loan. 
3. Compare multiple lenders: Check for the processing fees of different banks and financial institutions when comparing your personal loan option. Opt for a lender that best fits your financial needs. 
4. Check online lenders: Many online lenders offer better deals and lower processing fees than traditional lenders. 

Special Offers from NBFCs Offering Zero Processing Fees   

Many banks and NBFCs offer discount or zero processing fees for personal loan 

Promotional Offer: Many NBFCs offer zero processing fee as part of their promotional offer. They offer attractive interest rates with easy repayment offers. Some also offer zero processing fees for salaried professionals. Ex: Zype offering discount on processing fee during festive season 

Low Processing Fee Offer: Some NBFCs offer instant personal loans with low processing fees during special events or festive seasons.  

Offers with Competitive Interest Rate: Many NBFCs also offer low processing fees with attractive interest rates.   

Benefits of Applying for Zero Processing Fee Personal Loans

Many NBFCs and banks offer several benefits along with offering zero processing fee for personal loans.   The main benefits include:  

Save on Cost: With zero processing fee, you need not pay any upfront fee. Processing fees are usually 1% – 3 % of the loan amount.

Full Loan Amount: You receive the full loan amount without any deduction for processing fees. You save on the processing fees making it more affordable to take out a loan.

Easy to Compare Loan Options: When comparing various loan options, if one doesn’t have to worry about processing fee, they can focus on important aspects about the loan, like the interest rate and loan tenure. This makes it easy to compare loans, without worrying about the processing fee. 

Increases Customer Loyalty: Existing customers are more likely to opt for a loan if the bank or NBFC offer them zero processing fees on future loans. 

Attracts New Customer: An individual who is comparing loan options is more likely to opt for a loan option that offers zero processing fee. This attracts a new customer base to the NBFCs who offer this feature with their loan service. 

Steps to Apply for a Personal Loan with Zero Processing Fees

If you want to avail a personal loan with zero processing fees, here is our step-by-step guide: 

Step 1: Compare Lenders 

Before you consider applying for a personal loan, do good research on the lenders that are offering ‘zero processing fee’. You can check online to compare options and read customer reviews for their experience. 

Step 2: Improve Credit Score 

A lender is more likely to waive the processing fee if the borrower has a high credit score or a good credit history. 

Step 2: Review Eligibility Criteria 

Each lender has a basic eligibility criterion that one must meet to get a loan. Make sure you meet their criteria, which include age, employment status, credit score, etc. 

Step 3: Keep Documents Ready 

A lender may require documents like:

• Proof of Identity (PAN card, Aadhar) 
• Proof of Address (Electricity bill) 
• Income Proof (Salary slip, bank statement)  

Step 4: Finalize on the Lender 

After weighing all the options available, select the lender. Check for the interest rate, loan tenure and other charges. Select the lender that best fits your financial goals. 

Step 5: Fill Out the Loan Application

Fill out the personal loan application either online or offline. Submit the required documents for the application.  

Step 6: Review Loan Terms Carefully 

Once the loan is approved, read the terms and conditions by the lenders. Check for any charges. Since you are opting for zero processing fee, there should be no processing fee levied to you. 

Step 7: Accept the Loan Offer 

Accept the loan offer, after completing the steps above. You can now plan for the repayment and manage your finances accordingly. 

H2: Conclusion  

When you apply for a personal loan, it is important to understand the processing fees. It is usually between 0.5% – 3% of the loan amount. Many banks charge a non-refundable processing fee on loan applications, even if you choose not to proceed with the loan. Thus, do your research and compare lenders when considering applying for a personal loan. If you have a good credit score and a good equation with the lender bank, the bank is likely to waive off the processing fee. Additionally, many lenders offer zero processing fees as part of their promotion or during the festive season. Keep an eye on such offers, to avail zero processing fees while applying for a personal loan.