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 | Processing Fee |
| SBI | 0% to 0.35% (max. ₹11,500) |
| ICICI | 0.5% (min. ₹11,500) Onetime fee |
| HDFC | 0% to 0.5% (max. ₹11,500)Onetime fee |
| DHFL | 5,000 to ₹20,000One time fee |
| Indiabulls | 0.5% (min. ₹8,625) Onetime fee |
| Standard Charted Bank | 0.5% – 1.50% of the Loan Amount |
| Aditya Birla Housing Finance | No fee |
| IDBI | 1% of loan amount |
| Axis | Min. ₹10,000 at 1% of loan amt. |
| CITI | Up to . ₹ 5000/- |
| HSBC | 1% of the loan amount or Rs.10000,whichever is higher |
| Banks and HFCs not associated with LoanYantra | Processing Fee |
| PNBHFL | 0.25% to 0.50%(min.₹11,500)Onetime fee |
| TATA HL | ₹5,750 to ₹11,500One time fee |
| RELIANCE Home | .5% |
| YES Bank | Up to ₹11,500 |
| Federal Bank | ₹3,000 to ₹7,500 + S.T. Onetime fee |
| Indian Overseas Bank | 0.53% (max. ₹13,350)Onetime fee |
| Bajaj Finserve | 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) |
| Canara Bank | ₹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.
Our Role:
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.