Are there any hidden fees or charges associated with digital loans?

Yes, generally there can be some additional fees associated with digital loans that applicants should be aware of. Here is a quick overview:

1. Processing Fees: Most companies charge a processing fee to cover the administrative costs of originating the loan. This fee is charged upfront when you take the loan.
2. Prepayment or Foreclosure Charges: Some companies will penalise you for repaying your loan early or foreclosing on the loan by charging a penalty fee. It is recommended that you check the terms to see if any early repayment charges apply.
3. Late Payment Penalties: If you do not make your scheduled monthly payments on time, late payment fees are typically charged as a percentage of the overdue instalment amount.
4. Convenience Fees: Lending institutions may charge minor convenience fees for certain types of payments, such as online transfers, paper checks, and debit card payments. These fees are intended to cover any additional costs associated with processing these payment types.
5. Taxes: The loan amount and any interest accrued can attract indirect taxes you must pay. Applicable tax rates will determine this additional cost.