Yes, Everyone has at least a little confusion with respect to these terminologies.
So what you think would be the meaning of these terms??
How stupid is to ask such a question? If you would have a better understanding of it. Isn’t it obvious? that you wouldn’t have been here to read this post at all??
No Problem! By the end of this post I am sure you will be able to figure out what this terms exactly mean.
Processing Charges: These are the charges applied by a bank or any finance companies to process your loan application and provide you the loan amount based on your eligibility criteria and terms and conditions of the provider bank or any financial company.
Basically, it is the charges applied to the customer by any financial organization to meet the costs they come across to give a better efficient service to the customer.
Before, applying for any loan. Make sure you check for these charges properly. So that you are saved from paying heavy processing charges for the loan amount.
Because there are banks or finance companies which charge almost Nil or negligible charges to their customer.
Foreclosure Charges: These are charges applied by the bank or any finance companies to process the closure of your loan in advance.
Say by Grace of God! you could save huge money in shorter duration of time and you are now willing to pay all the remaining EMIs in advance. Then, you can do so by applying for foreclosure of the loan.
A gentle reminder, would be of no harm!
Please ensure before applying for any loans to avoid yourself from paying heavy foreclosure charges.
Because, there are banks or finance companies which charge almost Nil or negligible charges towards foreclosure of the loan.
Conclusion: No matter how careful you are in terms of loans and finance. Don’t ever be negligible with respect to these charges.
Because these charges might be negligible if the loan amount is small.
Same charges might be huge enough if the loan amount is large.
Hope so this post was of some help for you!
Keep reading my blog! Do let me know through your comments, if you have any specific questions with respect to the above post!