Processing Fee Calculator — Calculations & Slabs for FY 2026-27

A loan processing fee is a one-time administrative charge levied by banks, NBFCs, and HFCs to cover the expenses of verifying your application, checking credit scores, valuing property/collateral, and legal documentation.

Under Indian tax regulations, loan processing fees are classified as a banking/financial service. Therefore, they attract a mandatory Goods and Services Tax (GST) rate of 18%. This tax is paid directly to the government.

Generally, loan processing fees are non-refundable. Even if your loan application is rejected by the bank or you choose not to avail of the loan after sanction, the lender typically keeps the fee to cover administrative costs.

Yes. Lenders often waive processing fees during festive seasons or under special marketing campaigns. If you have an excellent credit profile (CIBIL score > 750) or are a pre-approved customer, you can negotiate a discount or complete waiver.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.