The loan fee is a fee which is due when a loan is provided. The amount of the loan fee is agreed upon by the lender and the borrower beforehand. It is commonly calculated from the amount of the loan and is listed as a percentage. The loan fee is commonly charged directly to the loan account. The paying of the loan fee is then done in monthly instalments which are made up of a repayment and an interest portion. The interest portion also includes the loan fee because here the effective interest rate is included which contains all of the costs of a loan.