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home loan

Home Loan Fees & Charges

  • Multiple Partner Options
  • Competitive Rates Starting From 7.25%* P.a.
  • Flexible Tenures Up To 30 Years

Summary

Banks and NBFCs levy various administrative, statutory, and service charges throughout the lifecycle of a home loan. These charges are broadly classified into pre-loan processing fees and post-sanction administrative charges.

Pre-loan charges typically include application review fees, administrative costs, and legal/technical property valuation expenses. Post-sanction charges may include pre-payment fees (where applicable), foreclosure charges, late payment penalties, and statement issuance fees. All fees and charges levied by institutional lenders are subject to applicable Goods and Services Tax (GST, currently 18%).

Fee structures vary across lending institutions based on their institutional policies. Always review the specific schedule of charges provided in your loan agreement.

Home loans have longer tenure range between minimum 2 years to maximum 30 years. Depending upon the individual applicant`s profile and lender, the APR (Annual Percentage Rate) of a home loan may vary from 7.25% - 13.00% annually.
Illustrative Example: If you take a home loan of Rs. 10 lakh at an annual interest rate of 7.25%* for 30 years would have an estimated EMI of Rs. 6,822. The total repayment would be approximately Rs. 24,55,835, including interest of Rs. 14,55,835. Actual rates, tenure and repayment terms depend on lender approval.

Fees & Charges Checklist

  • Processing Fees: Charged by lenders to cover application processing and underwriting costs, calculated as a fixed amount or a percentage of the approved loan amount.
  • GST (Goods & Services Tax): Applicable statutory tax (currently 18%) levied on all service fees, administrative charges, and penalties collected by lenders.
  • Legal & Technical Charges: Levied by lenders to cover expert evaluation of property titles, legal documentation, and technical valuation assessments.
  • Stamp Duty: Statutory state government fee payable during official property registration and mortgage creation.
  • Pre-Payment & Foreclosure Charges: Statutory guidelines restrict lenders from levying prepayment or foreclosure charges on floating-rate home loans extended to individual borrowers.
  • Late Payment Penalties: Levied by lenders in the event of delayed EMI payments beyond the designated due date.
  • EMI Bounce Charges: Applicable if an automated clearing house (ACH) mandate or standing instruction dishonors due to insufficient funds or technical errors.
Additional charges such as statement duplication fees, CERSAI registration fees, and loan switching fees may apply at the discretion of the participating lender.