New Delhi, Feb. 25 -- If you have recently applied for a personal loan, or planning to apply for one, remember that your actual EMI could be slightly larger than the principal and interest amount. Although this is not something you would have expected - you are disbursed slightly lower amount than the loan amount.

Each bank charges a small percentage of loan in form of processing charges. This could even be 2 percent of loan which is deducted from the amount of loan disbursement. These are some of the hidden charges which banks will not tell you about

Processing fees: Banks charge 1 per cent to 3 per cent of the loan amount as a processing fee.

Insurance charges: Banks also include a loan protection insurance to cover repayment risks. ...