When you’re taking out a ₹5 lakh personal loan, even a 2% processing fee adds up to ₹10,000. But thanks to limited-period offers from several banks, you could waive that fee entirely. Here’s what to know:
🏦 Banks Offering Zero Processing Fee
| Bank | Regular Fee | Zero-Fee Scenario |
|---|---|---|
| Bank of India | Standard applies | Waived for select loan categories during promotions paisabazaar.com+12livemint.com+12facebook.com+12 |
| IndusInd Bank | Up to 3–3.5% | Zero fee on digital applications, e.g., May 13–16, 2025 |
| Union Bank of India | 0.5% | Often waived during special campaigns |
| ICICI Bank | 0.99–2.5% | Online discounts at times |
| State Bank of India | 1–1.5% | Lower or zero fees during festive periods |
| HDFC Bank | 1–2.5% | Waivers available for select customers |
| Kotak Bank | Up to 2.5% | 0% fee offers for salaried employees occasionally |
| Yes Bank | Up to 2.5% | Occasionally waives fees on select offers |
🔑 Highlights
IndusInd Bank: Recently ran a zero-fee online personal loan offer (May 13–16, 2025). Offers up to 3.5% standard fee bankbazaar.com+9indusind.com+9livemint.com+9
Bank of India: Waives fee on specific loans during ongoing promotions moneycontrol.com+2livemint.com+2paisabazaar.com+2
Union Bank often waives its standard 0.5% during campaigns
✅ What You Should Do
Check bank websites for current zero-fee offers.
Apply digitally—most zero-fee deals are tied to online applications.
Read terms carefully—some offers exclude pre-approved customers or have minimum loan amounts.
Act quickly—these are limited-time deals and can change overnight.
✅ Bottom Line
Choosing a zero processing fee personal loan can save you ₹10,000–12,500 upfront. Be sure to compare with other loan charges—like interest rates and foreclosure fees—but waiving the processing fee is a smart starting point that reduces overall borrowing costs.