Assignment topic Documentation fees of loan

Assignment submitted By: Muhammad Bilal, Umaid Ali, Asfand Ali

SUBJECT: Financial Management

SUPERVISOR: Sir Muhib Nahrio

(University of Shaheed Benazir Bhutto Shaheed Benazirbad Associate professor)

DEPARTMENT OF: BBA (BECHLORE BUSINESS ADMINISTRATION)

DATE: 13/3/2020

Shaheed Benazir Bhutto University, Shaheed Benazirabad, Civil Line Nawabshah, Pakistan 67450
Ph-244-9370527 , Fax,+92-244-9370521, web: wwwsbbusba.edu.pk Page 2
 Documentation fee of loan

loan documentation fee raises a number of interest of a company some of them we discussed
here like reference and evidence that the company obtain borrowed money. That’s why most of
the banks rise their profit from documentation fees and then they quickly invest this profit other
secondary markets…. (Treasurers.org). when banks offer you cheap interest rates, some lenders
tactically balance the saving then you got charged by extra fees like, Application fee, property
valuation cost, Document preparation fee, legal costs, these examples are the subcategory of
establishment fees…. (yourmortgage.com). In the process of document preparation other fees
also charged like document processing fees in lender cover up the cost of boom checks and
other instruction guides. And the second one is paper copy fee in this lender cover up the cost of
record book of your transaction history. Third is underwriting fee this fees charged under some
specific condition not all lenders charge. Fourth is credit insurance fee this fee charged for the
personal loan if you face any unexpected tragedy or an accident. Fifth is check handling fee
when you submitting your check electronically or physically banks handle your checks that’s
why they charge fee. Sixth is collection agency recovery fee if your lender interested to hiring a
collection agency to get payment they charge you. Seventh is electronic payment processing fee
this is less common fee if your lender made strict terms and condition then you will be able to
pay this fees. Eighth is late payment fee when your payment is due date then lender offers a
particular period to pay late payment that’s why you this fee. Ninth is payment convenience fee
if your terms and condition indicate that ACH (Automated clear House) then you will pay for
this facility. Tenth is prepayment fee If your contract includes a condition against prepayments,
simply holding off on extra repayments can help you avoid this fee. But many lenders don’t
charge it…. (Finder.com)

Shaheed Benazir Bhutto University, Shaheed Benazirabad, Civil Line Nawabshah, Pakistan 67450
Ph-244-9370527 , Fax,+92-244-9370521, web: wwwsbbusba.edu.pk Page 2