Loan Maintenance Fee
The loan maintenance fee is an ongoing fee charged regularly to a borrower throughout the duration of a loan. It is meant to cover the costs of keeping the borrower's account active. The cost may be a fixed rate or a percentage of the loan amount, and may be charged monthly or annually. Not all banks charge a loan maintenance fee, but those that do are required to disclose the fee and amount in their ads to avoid misleading consumers. Many borrowers make additional payments to pay off their loans sooner and thus save on maintenance fees.