Taking a loan is often presented
as a simple decision: choose the loan amount, check the interest rate, see
whether the EMI fits your budget, and sign the agreement.
But the interest rate and EMI are
only part of the real cost of borrowing.
A borrower may also encounter
processing fees, insurance or other charges, penal charges, foreclosure or
prepayment-related costs, taxes and other expenses depending on the loan
product and applicable rules.