Loan origination fee

When you apply for a loan, the bank has to perform a series of administrative procedures to formalise the transaction, for which it may charge an origination fee, which is usually a percentage of the amount of the loan and sometimes has a minimum amount.

For example, if you apply for a loan of €50,000 with an origination fee of 1%, you will pay an origination fee of €500.

What requirements must be met in order to charge the origination fee?

  • The fees charged by banks are unrestricted, except in cases where they are limited by law. In the case of the origination fee, there is no limit, so each bank can establish the fee it chooses.
  • The bank must inform you of the fee amount before the transaction is performed.
Did you find this information useful?