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How do processing fees impact the overall cost of a loan or purchase?

Curious about Processing Fee

How do processing fees impact the overall cost of a loan or purchase?

Processing fees can increase the overall cost of a loan or purchase, as they are an additional charge on top of the principal amount or purchase price. For example, if you are taking out a loan for INR 100,000 and the processing fee is INR 1,000, the total amount you will have to pay back is INR 101,000. It's important to factor in processing fees when comparing different loan or purchase options to get a clear picture of the total cost. However, it's also important to consider other factors such as interest rates, repayment terms, and any other fees or charges associated with the loan or purchase.

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