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Consider a salaried customer avails a Personal Loan of ₹20,000 at an interest rate of 15% for a tenure of 12 months. The lenders also charge a processing fee which needs to be paid to get the loan processed and is usually 0-4% of the loan amount. Assuming the processing fee to be ₹500 , the total interest payable is ₹1,662 and the total amount payable is ₹22,162. The EMI will be ₹1,847 per month.