What does a short-term loan really cost?
Processing charges and other deductions can reduce what reaches your bank account. Always compare the net amount received against the full repayment and check the lender’s Key Facts Statement and APR.
An illustrative 30-day loan
Sanctioned amount₹30,000
Processing fee (10%)−₹3,000
Other assumed deductions−₹2,000
Amount actually received₹25,000
1% daily simple interest × 30 days₹9,000
Repayment at day 30₹39,000
Before accepting a loan: Read the KFS, APR, repayment schedule, processing charges, penal charges and lender identity. Whether particular rates or fees are lawful depends on applicable rules and facts.