Fee-Based Income is the revenue earned by banks or financial institutions from fees and charges for services, rather than from interest on loans.
Fee-Based Income (also called non-interest income) comes from services like account maintenance, transaction fees, advisory services, and commissions.
Banks generate this income alongside interest income to diversify revenue and reduce dependence on lending. It is an important indicator of a bank’s operational efficiency.
"A bank charges ₹500 as a processing fee for a loan—this amount is part of its fee-based income."