New Delhi, Aug. 14 -- Personal loans continue to remain a popular financial solution in the nation. They offer quick access to funds for personal needs without requiring collateral or other complications. Still, borrowers must be careful of several charges that accompany these loans, chief among them being the processing fee.

The processing fee is simply a one-time, non-refundable charge levied by lending institutions while approving and distributing personal loans. This fee generally ranges from 0.5% to 4% of the total loan amount. It depends on several factors, such as the lending institution, the borrower's credit profile, credit score, and promotional waivers. Furthermore, an 18% GST is added to the fee, which can further increase th...