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This example shows the total cost of a ₹50,000 loan including all fees and interest over 12 months.
If you apply for a loan of ₹50,000 at an 8% APR for 12 months, a processing fee of 2% (₹1,000) plus ₹180 GST will be charged.
The total fee amount of ₹1,180 will be deducted from your loan, so you will receive ₹48,820 as the disbursed amount.
You will repay ₹4,378 per month for 12 months, totaling ₹52,536 — which includes ₹2,536 as interest.
Explanation:
This means if you borrow ₹50,000, you’ll receive ₹48,820 after deducting applicable fees. You will repay ₹52,536 over 12 months through equal monthly installments (EMIs), which cover both the principal and the interest. This example helps you understand the approximate cost of the loan before applying.