Home Loan Processing Fees of All Banks/NBFC

*Data as per lenders’ websites

A part of the processing fee is non-refundable and the rest is charged on disbursement of the loan. If you qualify for a zero processing fee offer from the lender, you can save up to 2 Lakh, subject to the lender’s policy, on a Home Loan disbursement of Rs 50 Lakh.

Presently following banks are offering waivers on Home Loans, Home Loan Top Ups, and Home Loan Balance Transfers. These are time-bound offers. So check the applicability of the same before filling out the Home Loan application.

• Union Bank of India
• Bank of Maharashtra
• Punjab National Bank
• Bank of Baroda
• State Bank of India on select projects
• Oriental Bank of Commerce, NIL for loans up to Rs.5 Lakh

Apart from home loan interest rates and processing fees, a borrower bears some other costs as well. So let’s walk through all the charges involved in a Home Loan deal below.

These costs and charges will vary as per bank’s credit policy:

Login Fee/ Administrative Fee/ Application Fee:

This is a one-time fee applicable to all loan applications and thus a non-refundable charge. The amount ranges from Rs.2,500 to Rs.7,000. In approved cases, the amount is adjusted with the processing fee.

Prepayment Charge/ Foreclosure Charge/ Pre-closure Charge:

This charge is applicable on repayment of the loan before the completion of tenure. However, as per RBI rules, no foreclosure fee is applicable on Floating Home Loan Rates. This charge can range from 2% to 6% of the outstanding amount.

Likewise, Part Prepayment Fee of 0.5% to 2% of the balance loan amount is levied for part pre-payment of the loan balance before the tenure. The part prepayments are mostly used to reduce the loan tenure and interest payout. The same does not apply to Floating Rates.

Late Payment Fee/ Penal Interest Rate/ Penal Charges:

The late payment fee can range from 2-3% of delayed EMIs. Until the payment is made, the charge rolls over each month & interest on interest is levied.

Conversion Charge/ Switching Fee:

As the name suggests switching charge is applicable when you apply for conversion of your Home Loan, i.e. from MCLR to RRLR or from a floating-rate Home Loan to a fixed-rate Home Loan or vice versa. The charge is a nominal one, subject to the balance loan amount.

Mode Swap Charge:

This again is a nominal charge of Rs 500 or similar, for altering the repayment mode of the loan.

Recovery Charge/ Collection Charge:

This charge can be a variable cost and levied only when the bank incurs additional costs to recover the loan from the borrower. In a regular case, this will not be applicable at all.

Insurance Premium:

Home Loan Insurance is not mandatory but recommended though. It protects both the bank’s as well as the borrower’s financial worries in case of the death of the main applicant. Do factor in premium cost, if you take a large ticket Home Loan.

• Stamping Charge: This is the cost of getting a legal document on stamp paper.
• Income Tax Certificate Charge: This can be Rs 500 and not all banks charge it.
• Interest Certificate Charge: The charge for issuing a certificate of interest payment from the bank can be up to Rs.500 per request. The amount can also be NIL with some banks.
• NOC/NDC Charge: NOC is a No Objection Certificate (NOC) or No Dues Certificate (NDC) that is required as proof of successful completion of the loan. The fee may be NIL or Rs 500 per request. For duplicate NOC or NDC or for revalidation of NOC the charge may range from Rs.100 to Rs.500 per instance.
• Agreement Copy Fee: For agreement copy bank may charge zero to Rs.500 per instance.
• Issuance Charge for Photocopy of Title Documents: The bank may charge NIL Rs.1,000 for a copy of property documents per instance.
• Duplicate Statement Issuance: Duplicate statement charges may vary from zero to Rs.250 per request.
• Amortisation Schedule Fee: For a detailed amortisation schedule bank may charge NIL to Rs.250 per request.
• Document Retrieval Charge: At the end of the loan, when you apply for document retrieval the bank will charge you Rs 500 to Rs.5000.

• Legal Fees: The fee is based on expenses incurred by the bank on hiring a legal expert for legal formalities such as tripartite agreement among borrower, builder, and lender.
• Valuation/Inspection Fee: Before sanctioning the loan, the bank will inspect the property and evaluate its market value. The cost involved in the same is charged as a valuation or inspection fee.
• Memorandum of Deposit of Title Deed (MoD): MODTD, DTD, or MODT is a non-judicial stamp paper document that confirms ownership of the property. It will show that the property with XYZ has been provided to the bank as loan collateral. The charges vary according to state.
• CERSAI: CERSAI is the Central Registry of Securitisation Asset Reconstruction and Security Interest of India. A property loan should be registered with CERSAI so that the same collateral is not used for multiple loans. The charge is nominal, i.e. Rs 50 to Rs 500.

Furthermore, you are also required to pay out Stamp Duty and Registration Fee. Other Misc charges such as loan cancellation fees etc may also be applicable in some cases. It is always recommended to read the Terms & Conditions and the loan agreement and learn about all kinds of fees and charges applicable to Home Loan.