Once a bank sanctions a personal loan, it draws up official paperwork stating the loan terms. This process leads to administrative costs, which form your loan’s processing fee. Typically, this fee is a small percentage of your sanctioned personal loan amount.

But what if there were ways to escape paying this charge altogether? That would relatively bring down your entire loan cost. If you are looking for personal finance at a low or zero processing fee, here are two ways in which you can make this a possibility. 

1. Apply for an Instant Personal Loan 

You can opt for an instant personal loan for any end purpose online. Sure, you must look for a renowned bank with a user-friendly digital portal before doing so.

Applying for instant personal finance online is a sure-shot way to lower your processing fee, as the bank sanctioning your loan can cut certain overheads and operational expenses. In fact, after a careful search online, you may also find certain banks that charge zero processing fees in exchange for an instant personal loan. 

Your eligibility for this type of loan will depend on your previous credit history and CIBIL score. Here are the steps to apply for an instant personal loan.


  • Log in to a bank’s website and fill out their digital form. This form will ask for personal details and your PAN number. After which, you may be asked to verify your mobile number.
  • Post submitting your personal details and verifying your mobile number, the bank will show you the best offers you are eligible for. Choose from any one of these options based on the EMI and tenure you’re most comfortable repaying.
  • Choose your loan offer and complete your VKYC.
  • Finally, the bank will  verify your candidature and approve your loan within minutes. Then you provide the disbursement details and you will receive the funds directly in your account.
  • Keep in mind that these are general steps, and your bank may have a few more steps before sanctioning your loan.  


  2.Look for Pre-Approved Offers 

A pre-approved loan is also a type of instant personal loan certain banks may provide at a low or zero processing fee. As the name suggests, a bank reaches out to certain individuals with a pre-approved personal loan offering.

Since they do this after vetting a potential borrower, there is minimum documentation and no collateral involved. 

For instance, a renowned bank like the IndusInd Bank offers a pre-approved instant personal loan at affordable interest rates and low processing fee. So, you can check with them if you qualify for a pre-approved instant personal loan. 

In The End 

Both pre-approved and instant personal loans are excellent ways to fund any big-ticket purchases, medical emergencies, higher education, etc. To avail of either, simply visit the bank’s website, check the ROI, eligibility and processing fees, and get the funds into your account right away.