Post demonetization has left the home loan sector in true benefits!!!
After the decrease of interest rates came subsidy for the home loan for the amount 12 lakh. The nationalized banks reduced the home loan interest rates making really competitive and tough to choose from. SBI stands as a pioneer to reduce the interest rates.
Yet another step by SBI which gave rise to further competition, no processing fees period. LIC Housing, Kotak Mahindra Bank are some of the followers in nullifying the processing fees.
This is the best time to avail the home loan or to opt for a balance transfer. Because, you can skip the charges as they usually go upto a maximum amount of Rs. 10,000.
How Does No Processing Fees Work?
Processing fee is charged by the institutes or banks which includes the charges for the document check, legal check and property check.
So, what happens during no processing fees period is, you have to pay the legal charges separately. Whatever may be the extra cost, it doesn’t reach the usual processing charge limit.
But, always ask for the other additional charges while opting a loan during this season.
How Loanyantra Works on No Processing Fees?
Loanyantra, the first ever online home loan management company, suggests you which option is better. It makes you aware what kind of institute you can opt and what are the hidden charges by them. Be the first to know when there are promotions or offers by your favorite bank or institute.
Know more and avail more cash back offers on home loan. Happy Home loans.
Processing fee- an important factor you need to consider before applying for home loan
Buying a home is a tedious and a strenuous process; since most of the home purchase is backed by a home loan, a lot of research goes in finding the right loan which matches your requirement and doesn’t burn a hole in your pocket. Despite all the active effort from your end, many of you miss the other costs we bear during the process of home loan application and sanctioning. These charges play an important role while deciding the bank or HFC from where you want to avail the home loan. One of the most important charges that top the list of charges is the processing fee.
What is processing fee?
Banks and HFCs charge a service fee for processing the home loan application. During the process of loan sanctioning, bank involves lawyers and property evaluators. There are others fees apart from processing fee that bank charges the likes documentation charges, stamp duty etc. An important point to note here is that the processing fee is non-refundable even if the loan gets rejected. Another noteworthy point is that the processing fee varies from one bank to another.
Here is the list of banks and HFCs along with their processing fee:
|Banks and HFCs associated with Loan Yantra
||0% to 0.35% (max. ₹11,500)
||0.5% (min. ₹11,500) Onetime fee
||0% to 0.5% (max. ₹11,500)Onetime fee
||5,000 to ₹20,000One time fee
||0.5% (min. ₹8,625) Onetime fee
|Standard Charted Bank
||0.5% – 1.50% of the Loan Amount
|Aditya Birla Housing Finance
||1% of loan amount
||Min. ₹10,000 at 1% of loan amt.
||Up to . ₹ 5000/-
||1% of the loan amount or Rs.10000,whichever is higher
|Banks and HFCs not associated with LoanYantra
||0.25% to 0.50%(min.₹11,500)Onetime fee
||₹5,750 to ₹11,500One time fee
||Up to ₹11,500
||₹3,000 to ₹7,500 + S.T. Onetime fee
|Indian Overseas Bank
||0.53% (max. ₹13,350)Onetime fee
||0.8% of the loan amount for salaried individuals
|LIC Housing Finance
||₹10000 to ₹15000
|Bank of Baroda
||₹7,500 to ₹20,000
|Bank of India
||Min. 1000 and Max. Rs. 20,000
|Bank of Maharashtra
||0.25% (max. ₹25,000)
||₹1,500 to ₹10,000
What you should know about processing fee?
Processing Fee is paid to the bank or any NBFC when you avail a home loan. Also it is important to note that if you want to get the new customer interest rate, you can pay the processing fees and convert your prevailing interest rate to the new borrower interest rate.
Whenever you balance transfer the loan amount from the existing lender to a new lender, you have to pay the processing fees. Though a little amount is to be paid, never ignore to change your interest rate as you end up not paying lakhs of rupees to the lenders.
Loanyantra is a one-stop solution for your entire housing loan requirement. Experience the hassle-free balance transfer of your loan. Relax as we have a free door-step service for collection of the documents and submission of the documents. Our dedicated SPOC or Single Point of Contact helps you understand the process of home loan and also takes care of all the procedure and paperwork. If you wish to know more about home loan and its allied services get in touch with us today.