MoneyLens/Personal borrowing/Sample personal loan

MoneyLens / Personal borrowing

Your loan, explained.

Personal loan · Fixed rate · Nirmal Bank Ltd · ••••5210

Illustrative

Amount you'll receive

ContractKFS · Sanction

₹7,66,420

of ₹8,00,000 sanctioned · ₹33,580 deducted before the money reaches you

Monthly EMI

₹17,998

Real annual cost (APR)

14.41%

Total you'll repay

₹10,79,909

Tenure

60 months · fixed rate

₹10.80 L

total EMIs

Where your repayments go

Principal you receive₹7,66,420

Fees & insurance deducted₹33,580

Interest₹2,79,909

Monthly reducing balance. Excludes penalties and future charges.

Where ₹8,00,000 goes before it reaches you

Sanction p.2

₹8.00 L

Sanctioned

−₹16,000

Processing fee

−₹2,880

GST on fee

−₹500

Stamp duty

−₹14,200

Credit-life insurance

₹7.66 L

You receive

Axis starts at ₹7.36 L so the deductions are visible.

Interest rate vs real borrowing cost

APR reconstructed by Myra14.41%

APR disclosed in KFS13.59%

Interest rate (headline)12.50%

Myra rebuilt the cash flows: you receive ₹7,66,420 and pay 60 × ₹17,998. The KFS figure appears to leave out the insurance premium.

Loan Cost Intelligence

What Myra found and reconciled across your documents.

2 to check

Analysis	What Myra found	Status	Source
Document conflict	The insurance is called optional, but it's deducted from your loan	Finding	KFS p.2, §B note 3 · Sanction p.2
Borrowing cost	The real annual cost is 14.41%, not the disclosed 13.59%	Finding	KFS p.2, §C row 9 · Sanction p.2 · KFS p.1, §A
Net disbursement	You'll receive ₹7,66,420, not ₹8,00,000	Verified	Sanction p.2 · KFS p.1, §A
Total cost	You repay ₹11.13 L for ₹8.00 L borrowed	Verified	KFS p.1, §A
Exit terms	Closing early costs 4.0% of what you still owe, plus GST	Verified	Sanction p.2, cl. 4 · KFS p.1, §A
Cooling-off	3 days after the money arrives to change your mind	Verified	KFS p.3, §D
EMI check	EMI of ₹17,998 matches the rate and tenure	Verified	KFS p.1, §A

Document conflict

Needs answer

The insurance is called optional, but it's deducted from your loan

Sanction p.2Amount to be deducted at disbursement: processing fee ₹16,000 + GST ₹2,880, stamp duty ₹500, insurance premium ₹14,200.

KFS p.2, §B note 3Credit-life insurance is optional and not a condition for sanction of the loan.

If the cover really is optional, declining it before disbursement adds ₹14,200 to what you receive and lowers your APR. Ask the lender to confirm in writing.

What a missed EMI triggers

Day 1

EMI bounces

₹590 bounce charge; 2% a month penal charge starts on the overdue EMI (no GST, no interest on it)

1–30 days

SMA-0

Reminders; lenders report overdue status to credit bureaus (now every 15 days)

31–60 days

SMA-1

Penal charges keep accruing on each unpaid EMI

61–90 days

SMA-2

Recovery follow-up escalates under the lender's fair practices code

90+ days

NPA

Account can be classified non-performing; the lender may recall the full outstanding