Work out the processing fee, 18% GST and other deductions on a business loan, and the net amount that will actually reach your account.
Many MSME borrowers notice only on disbursement day that the amount credited is lower than the sanctioned loan. Lenders typically deduct the processing fee plus 18% GST, fixed documentation or inspection charges, the first-year CGTMSE guarantee fee and any insurance premium from the disbursal, while you still pay interest on the full sanctioned amount.
How to use it. Enter the sanctioned amount and the processing fee percentage from the sanction letter or Key Fact Statement. Put flat charges in the fixed box and add the CGTMSE fee and any insurance premium as other deductions. If your lender quotes the fee already including GST, reduce the percentage accordingly.
Worked example (illustrative). On a ₹20 lakh loan with a 1.5% fee, the fee is ₹30,000 and GST is ₹5,400. Add ₹5,000 of fixed charges and a first-year CGTMSE fee of ₹12,980 (0.55% of ₹20 lakh plus GST). Total deductions are about ₹53,380 and about ₹19,46,620 reaches your account. That is 2.7% of the loan gone before the first EMI, which raises the effective cost of a 3-year loan by roughly 1.5–2 percentage points a year.
Limits. GST paid on the processing fee may be claimable as input tax credit if your business is GST-registered and the loan is for business use; ask your CA. Check whether insurance is optional. See processing fees and the Key Fact Statement.
Mistakes, Problems and Official Sources
How an MSME complains about wrong charges, refused prepayment, harassment or rate errors on a business loan, from the lender's grievance officer to the RBI Ombudsman scheme of 2026.
Rates, Schemes and 2026 Rules
Every charge on an MSME business loan in India, from processing fee plus 18% GST to CGTMSE, stamp duty and penal charges, and how to read the KFS and APR.
Rates, Schemes and 2026 Rules
How the CGTMSE credit guarantee lets micro and small enterprises borrow up to ₹10 crore without collateral, the 2025 fee table, who pays it, and the 2026 RBI collateral rule.
Calculations and Checklists
Compare a bank, an NBFC and a small finance bank business loan offer on APR, total cost and terms, with fees, GST and CGTMSE included and the arithmetic shown.
Rates, Schemes and 2026 Rules
How TReDS platforms let MSMEs discount invoices on large buyers without recourse, what it costs, and how the MSMED Act 45-day rule and MSME Samadhaan help with late payments.
