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loans are usually accompanied by the following additional costs: a)
Processing fee: It's a fee payable to the lender on applying for a loan.
It is either a fixed amount not linked to the loan or may also be a
percentage of the loan amount. b) Prepayment Penalties: When a loan is
paid back before the end of the agreed duration a penalty is charged by
some banks/companies, which is usually between 1% and 2% of the amount
being pre paid. c) Commitment Fees: Some institutions levy a commitment
fee in case the loan is not availed of within a stipulated period of
time after it is processed and sanctioned. d) Miscellaneous costs: It is
quite possible that some lenders may levy a documentation or consultant
charges.
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