Home Loan Processing Fees of All Banks and NBFCs

Home Loan Processing Fees

BASIC TEAM

6 mins reading

Last updated on 27th December 2023

Today, most people are opting to avail a loan from banks and other financial institutions to purchase a new house. One reason is that property prices are high and most people can't afford the entire amount upfront. Secondly, getting a home loan nowadays is quite quick and hassle-free as long as you meet all the lender's requirements. All aspiring home buyers need to do is to compare the home loan deals offered by different lenders, and choose the one that suits their preference. Once the lender is finalized, the loan borrowers need to apply for the loan by filling up the lending institution’s loan application form. Thereafter, the lender starts processing the application. During this process, until the loan amount (full or part) is disbursed, there will be occasions when the borrower needs to pay certain home loan processing fees.

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What are Loan Processing Fees?

The house loan processing fees, which are also called settlement or closing costs, are additional costs that borrowers need to pay for different purposes, including loan initiation, title pursuit and insurance, loan discount points, loan appraisal, recording charges, and Home Owner’s Association (HOA) fees. These are the charges that cover the processing of the loan, protection against title difficulties, assurance of property value, and other services. The fees that may be levied for these purposes may vary based on the loan type, region, and lender. Thus, borrowers also need to do thorough research and comparison of the fees imposed by different lending institutions, beforehand.

Sugested read: Home Loan Processing Time

For example, the SBI home loan processing fee is about 0.4% of the loan amount with the minimum processing amount being ₹10,000. On the other hand, the HDFC home loan processing fee is 0.5% of the loan with the minimum amount being ₹3,000. There are instances, especially during festive occasions, when lenders may waive these processing fees on home loans.

Here is the list of Home Loan Processing Fees of All Banks/NBFC in India 2023 (July 2023)

Bank/ NBFC Processing fee (% of the loan amount)
SBI Home Loan Up to 0.35 % of the loan amount + applicable GST
*Completely waived off for approved projects
ICICI Bank Home Loan 0.50 – 2% of the loan amount
Minimum of ₹1,500 + applicable GST;
Minimum of ₹2,000 + applicable GST for Mumbai, Bengaluru, and Delhi
Bank of Baroda Home Loan Up to 0.25% of the loan amount
Minimum of ₹8,500
Maximum of ₹25,000
HDFC Home Loan Salaried & self-employed professionals:
Up to 0.50% of the loan amount; Minimum of ₹3,000 + applicable taxes
Self-employed non-professionals:
Up to 1.50% of the loan amount; Minimum of ₹4,500 + applicable taxes
Kotak Mahindra Home Loan Up to 0.50% of the loan amount + GST & applicable statutory fees
Axis Bank Home Loan Up to 1% of the loan amount
Minimum of ₹10,000
Deutsche Bank Home Loan Up to 1% of the loan amount
IDBI Home Loan 0.50% of loan amount + applicable taxes
Union Bank of India 0.50% of the loan amount
Maximum of ₹15,000 + tax as applicable
Bank of Maharashtra Nil
Indian Overseas Bank Up to 0.50% of the loan amount
Maximum of ₹25,000
Bank of India Home Loan Up to 0.50% of the loan amount
Minimum of ₹1,500
Maximum of ₹50,000
Central Bank of India Up to 0.50% of the loan amount
Maximum of ₹20,000
Indian Bank 0.23% – 0.40% of the loan amount
Maximum of ₹50,000
Yes Bank Home Loan 1.5% of the loan amount
LIC Housing Loan Up to ₹2 Crore: 0.25% + applicable tax
Loan above ₹2 Crore: 0.35% + applicable tax
RBL Home Loan 1.5% of the loan amount
IDFC Home Loan Up to 3% of the loan amount
Fullerton Grihashakti Up to 0.25% of the loan amount
Aditya Birla Capital Home Finance Up to 1% of the loan amount
Federal Bank 0.50% of the loan amount
Minimum of ₹3,000 – ₹7,500
Canara Bank 0.50% of the loan amount
Minimum of ₹1,500
Maximum of ₹10,000
Tata Capital Home Loan Starts from 0.5% of the loan amount + GST
Bajaj Finserv Home Loan Up to 0.5% of the loan amount
Aadhaar Housing 0.50% of the loan amount + applicable GST
Repko Home Finance 1 % of the loan amount
PNB Housing Home Loan 1% of the loan amount + applicable tax

Besides these processing fees, there are some other charges that borrowers are required to pay.

Suggested read: Top Housing Finance Companies in India

Add-on charges for Home Loan by Banks and NBFCs

1. Application / Administrative Fee

Applicable to all loans application, the application or administrative fee is a one-time fee and is non-refundable. The fee in this case can vary from ₹2,500 to ₹7,000. In certain approved cases, this amount may get adjusted with the processing fee.

2. Document Verification Fee

This is the fee that loan borrowers need to pay for certifying the authenticity of their documents, including official identification documents, address proof, income, etc.

3. Valuation Fee

The valuation fee is charged for ascertaining the valuation of a property and its worth in the market. This fee is usually dependent on the value of the property. It varies from one lender to the other.

4. Technical and Legal Verification Fee

This is the fee charged for document verification of the property regarding its legal and technical aspects. However, this charge may vary on the property’s location and complexity.

5. Registration Charges and Stamp Duty 

The registration charges and stamp duty are the fees levied by the government on the property registration papers. This fee varies from one Indian state to the other.

6. Agreement Copy Fee

The house agreement copy fee may be levied by the lender, and it could be a maximum of up to ₹500.

7. Issuance Charge for Photocopy of Title Documents

A maximum charge of up to ₹1,000 may be charged for a copy of property documents.

8. Foreclosure Fee

In case of foreclosure of a loan before the tenure, banks or financial institutions may charge a fee. This is waived off in cases of variable home loan interest rates. The consideration of this fee differs from bank to bank and also on the remaining term of the loan.

9. Income Tax Certificate Fee

This fee can be up to ₹500 but most banks do not charge it.

10. Interest Certificate Fee

The fee for issuing a certificate of interest payment by the bank can be a maximum of up to ₹500.

11. NOC/NDC Fee

No Objection Certificate (NOC) or No Dues Certificate (NDC) fee can be NIL or up to ₹500. These certificates are required as proof of successful completion of the loan. For a duplicate NOC or NDC, the charge may be between ₹100 to ₹500 per request.

So, anyone planning to apply for a home loan needs to be clear about the additional expenses that may arise during the loan approval process or later so that he or she can keep these fees into account to avoid last-minute hassles.

Published on 18th July 2023