The most important and clear fee charged on home loans is the processing fee. It is a fee you have to pay banks or NBFCs to deal with your home loan application. It is a one-time fee that is usually paid upfront – that is, you have to pay it out of your own pocket to the bank/NBFC instead of it being deducted from your loan amount. Some banks may call it administrative fee. Usually the processing fee will be charged only after your application is approved.
Most banks charge a processing fee on their home loan schemes. However, some financial institutions either do not charge any processing fee or waive it as a special offer. Some banks may have separate charges for salaried persons, self-employed professionals (SEP), and self-employed non-professionals (SENP).
Processing fee is generally a percentage of the loan amount. Banks might also specify a minimum and/or a maximum amount chargeable. Being a service charge, you also have to pay GST on it. The current GST on services is 18%.
The table below gives you a comprehensive list of all the banks in India and the processing fee charged by them, from the lowest to the highest:
|Name of the Lender||Processing Fee (in percentage)||Minimum processing fee||Maximum processing fee|
|State Bank of India (SBI) Privilege/Shaurya Home Loan||Nil||-||-|
|IOB Gharonda - Indian Overseas Bank PMAY Scheme||-||Rs.2,000||R.3,000|
|Karur Vysya Bank||-||Rs.2,500||Rs.7,500|
|Central Bank of India Cent Home Loan Plus||-||-||Rs.500|
|LIC Housing Finance||-||-||Rs.15,000|
|Punjab and Sind Bank||0.15% to 0.25%||Rs.1,000||Rs.15,000|
|Allahabad Bank||0.24% to 0.4%||-||Rs.15,000 for Rs.1 crore or less Rs.50,000 for over Rs.1 crore|
|Bank of India Star Home Loan/Star Smart/Star Pravasi||Individuals - 0.25% Corporates/Partnership firms - 0.5% Rural areas: 0.1875%||Rs.1,000||Rs.10,000|
|Jammu and Kashmir (J&K) Bank*||0.25%||Rs.5,000||Rs.25,000|
|Bank of Maharashtra||0.25%||-||Rs.25,000|
|Bank of India Star Diamond Home Loan||Individuals - 0.25% Corporates/Partnership firms - 0.5% Rural areas: 0.1875%||Rs.50,000||-|
|UCO Bank||0.25% to 0.5%||Rs.1,000||Rs.15,000|
|Bank of Baroda||0.25% to 0.5%||Rs.8,500||Rs.25,000|
|DBS Bank||0.25% to 1%||-||-|
|State Bank of India Home Loans||0.35%||Rs.2,000||Rs.10,000|
|Citibank||Rs.5,000 + 0.4%||-||-|
|SBI Earnest Money Deposit||0.5%||Rs.1,000||-|
|South Indian Bank||0.5%||Rs.5,000||Rs.10,000|
|Central Bank of India - Cent Home Loan/Cent Home Loan Double Plus Scheme/Purchase of 3rd or 4th flat or house||0.5%||-||Rs.20,000|
|Indian Overseas Bank||0.5%||-||Rs.25,000|
|Oriental Bank of Commerce||0.5%||Rs.2,000||Rs.30,000|
|SBI Corporate Home Loan||0.5%||Rs.50,000||Rs.10 lakh|
|Catholic Syrian Bank||0.5%||-||-|
|Tamilnad Mercantile Bank||0.5%||-||-|
|Tata Capital||0.5% onwards||-||-|
|Corporation Bank||0.5% to 1%||Rs.1,000||Rs.50,000|
|United Bank of India||0.59%||Rs.1,180||Rs,11,800|
|ICICI Bank||0.5% to 1%||Rs.2,000 in Bangalore/Delhi/Mumbai Rs.1,500 in other Indian cities||-|
|Abhyudaya Co-operative Bank||0.6%||-||-|
|IIFL||Up to 0.75%||Rs.3,000||-|
|Cosmos Bank||0.5% to 1%||-||-|
|HDFC Limited||Salaried persons/SEP: Up to 0.5% SENP: Up to 1.5%||Salaried persons/SEP: Rs.3,000 SENP: Rs.4,500||-|
|DHFL**||Salaried persons/SEP: Rs.5,000 to Rs.20,000 SENP: Net PAT - 0.5%; Others - 1.5%||-||-|
|Axis Bank**||Up to 1%||Rs.10,000||-|
|Aditya Birla Housing Finance Limited||Up to 1%||-||-|
|Standard Chartered Bank||Up to 1%||-||-|
|Deutsche Bank||Up to 1%||-||-|
|Indiabulls||Rs.10,000 to 1%||-||-|
|Bajaj Finserv||Salaried persons: Up to 0.8% SEP/SENP: Up to 1.2%||-||-|
|PNB Housing Finance Limited||1%||Rs.10,000||-|
|City Union Bank||1.1%||Rs.250||-|
|Gruh Finance Limited^||Rs.3,500 to 2%||-||-|
|Aavas Financier Limited||Up to 2%||-||-|
|Kotak Mahindra Bank||Up to 2%||-||-|
|ISFC||2% to 3%||-||-|
|Religare Limited||Up to 3.5%||-||-|
*J&K Bank gives 50% waiver of processing fee for women borrowers, whether they are sole borrowers or joint borrowers.
**Axis Bank and DHFL collect Rs.2,500 as minimum login fees at the time of application. This is non-refundable; if your loan is sanctioned then this amount will be reduced from the processing fee.
*** RBL Bank levies an application fee of Rs.6,500 for Mumbai and Rs.5,000 for other Indian cities.
Gruh Finance has processing charge, processing fee, and administrative fee. Check with the company before you apply.
The banks listed below do not specify any processing fees for home loans on their website. Please check with the respective banks before applying.
Here are some banks that have no processing fee or offer a waiver of processing fee for home loans:
Apart from Processing Fees, home loans come with several other fees/charges/penalties. Before you apply for a home loan, it’s important to know these so that you are not confused by the terminology and are clear about what you’re the paying the bank for.
All banks may not levy all the charges given below, some banks may employ different terminologies, while some others may club multiple of these under the same type of fee. However, knowing how much you are expected to pay for various actions while you have a housing loan can be very useful.
Roughly, the fees can be divided into the following:
Let’s look at what each fee in home loans means. Note: You may need to pay additional GST on almost all the charges given below.
Please note that Stamp Duty and Registration Fees are not covered by your bank loan. You have to pay it separately, and the amount payable differs from state to state.
Other standard fees applicable to other types of loans and deposits, such as Document Retrieval Charges and Cheque Bounce Charges remain the same for home loan as for any other banking division. Also check for loan cancellation charges (if you decide to not take a loan after it is sanctioned) – that might come as a percentage of the loan amount or a specific amount. Delay in submitting the required documents or filing your records may also invite a penalty.
Make sure you read the MITC (Most Important Terms & Conditions) document and the loan agreement that the bank sends you – these documents will have all the kinds of fees and charges applicable to your loan.
Most lenders charge processing fees either in full or in part, when you submit your home loan application and/or after the loan is approved.
You can. If you are eligible for a processing fee waiver, the lender will approve it.
Lenders may give you a partial refund on the processing fee paid at the time of application after withholding a portion of the fee paid. Depending on the bank/FI, you may get a partial refund or no refund of the processing fee paid.
Processing fees are usually charged by lenders to cover their costs when they process your loan application. However, some lenders run festive offers and promotions from time to time where they waive the processing fees. Currently, SBI and BOI are offering processing fee waivers on their home loans.
An 18% GST is charged on processing fees.
This page contains a tabular list of all the banks and their home loan processing fees. That should help you make the comparison.
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