Home Loan Processing Fee

*The processing fee and interest rate mentioned above are subject to change without any prior notice.

Home Loans with Zero Processing Fee

Processing fee is usually charged as a certain percentage of the loan amount. This percentage is generally in the range of 0.35% to 7%. Since the loan amount is usually very high, the processing fee is also a considerably big amount.

However, at times, various lenders offer to waive off your processing fee. If you are still exploring your home loan options, it’s best to check with lenders about any such offers before you apply.

What other Home Loan Fees & Charges are Applicable?

There are several other charges that you may have to pay, in addition to the processing fee. Before you apply, check all the charges and fees applicable. Keeping in mind your requirements, choose a home loan that minimizes your additional costs/charges.

Here are some of the most common fees & charges levied by lenders:

Prepayment charge

This is the charge you have to pay when you pay off your outstanding loan balance before the tenure ends. Banks and financial institutions charge a certain amount for the prepayment. It usually ranges from 2% - 6%. However, most lenders do not levy any prepayment charges on floating rate loans.

Conversion charges

If you wish to change your floating rate loan to a fixed rate loan, or vice versa, you will have to pay a one-time conversion charge.

Late payment fee

This fee is charged when you fail to make your EMI payment on time. It is usually charged as a certain percentage of the delayed amount every month.

Legal fees

This is the amount charged by lenders for legal verification of your property documents. This amount usually varies from lender to lender and may range from Rs 5,000-Rs 10,000.

Balance Transfer charge

You have to pay a balance transfer charge if you wish to transfer your loan balance from one lender to another. Balance transfer facility is availed by borrowers with the purpose of shifting to a cheaper or more affordable home loan.

Valuation charges

This charge is levied by the bank for the expenses incurred on valuation of the property. Based on this valuation, lenders approve your home loan.

MOD charge

The Memorandum of Deposit (MOD) is also one of the most important charges you have to pay while applying for a home loan. This MOD is required to confirm that you have deposited your property’s title deed to the bank as loan collateral. MOD charges may vary across states and are usually in the range of 0.1% - 0.5%.