What Are the Interest Rates and Fees for Loans Without Financials?

Getting a loan without financial documents often comes at a higher cost than regular secured loans. Here is an overview of the typical interest rates and fees you may encounter:

Interest Rates

• Interest rates may be noticeably higher than regular loans. Rates can vary significantly based on your credit profile, loan amount and the financial institution.
• In general, interest rates for no-doc loans are higher than those for traditional loan products. However, some new-age lending companies may offer competitive rates.
• Interest is charged on a monthly reducing balance, so it reduces as you repay the principal each month.
  Fees
• Processing fees are applicable, usually a percentage of the loan amount. This covers costs like document verification and underwriting.
• Foreclosure or prepayment charges may apply if you close the loan before completing the full tenure. Some lenders waive this if you foreclose after a minimum number of Equated Monthly Instalments (EMIs).
• If the EMI is not paid on time, late payment fees are charged. These are generally fixed charges per instance.
• Other charges, such as administrative fees, cheque bounce penalties, etc., may also apply as per the lender's terms and conditions.