The Loan application processing fee is a fee that is charged to applicants for the processing of their loan request. This fee typically covers the lender’s costs associated with evaluating and processing the loan application. Generally, this fee is non-refundable and is charged regardless of whether or not the loan is approved. The amount of the loan application processing fee varies based on each lender, but typically ranges from one-half to one percent of the loan amount. It is important for applicants to understand the fee before they submit a loan application.