Work out the processing fee with 18% GST, flat charges and other deductions on a personal loan, and the net amount that will reach your bank account.
Many borrowers learn on disbursement day that the money credited is lower than the sanctioned loan, while interest runs on the full amount. Lenders usually deduct the processing fee and the 18% GST on it, flat documentation charges, stamp duty and sometimes an insurance premium or an advance EMI from the disbursal.
How to use it. GST applies to the fee, so enter the fee including GST: multiply the quoted fee percentage by 1.18 (2% becomes 2.36%, 1.5% becomes 1.77%, 3% becomes 3.54%). If the lender quotes a flat rupee fee, set the percentage to 0 and put the fee plus GST in the flat charges box. Enter insurance premiums, advance EMIs or broken-period interest deducted at disbursal as other deductions.
Worked example (illustrative). On a ₹5 lakh loan with a 2% fee, the fee is ₹10,000 and GST ₹1,800, so the tool takes 2.36% = ₹11,800. Add ₹1,500 of flat charges: ₹13,300. Deduct a ₹6,000 insurance premium and about ₹4,80,700 reaches your account, 3.9% less than the sanctioned amount.
Limits. Fee caps, minimums and GST treatment are set in the lender's schedule and KFS; always use those figures. Ask whether the insurance is optional before you treat it as a cost of the loan. See processing fees, GST and other charges.
Rates, Charges and 2026 Rules
Every charge on an Indian personal loan — processing fee with 18% GST, stamp duty, bounce and penal charges, foreclosure fees — and how each changes the cost you pay.
