New Delhi, April 23 -- If you are planning to raise a personal loan, it is vital to weigh a number of factors before you choose the one that suits you the most. Among several factors, it is vital to consider the processing fee which could be as high as 2-3 percent of the total loan amount.

So, let us first understand what exactly is theprocessing fee in case of a personal loan. It is a one-time fee charged by the bank from the borrower for processing of loan application. It is typically deducted upfront from the loan proceeds and only the remainder ofpersonal loan money is transferred to the borrower. For instance, when someone applies for a Rs.10 lakh loan and the processing fee is 2 percent, the bank would transfer Rs.9.8 lakh after de...