Home Loan Processing Fees and Charges - Latest Rates
The home loan processing fee is a one-time charge of banks and NBFCs levy to process your application, usually paid upfront and charged only after approval. It may be called an administrative fee and varies by lender and borrower category (salaried, SEP or SENP).
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).
Current Home Loan Processing Fees of All Banks 2026
The 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 fees charged by them, from the lowest to the highest:
Banks | Processing Fee (Min. in %) | Processing Fee Amount (Min) |
0.35% | Rs.5,000 | |
0.5% | Rs.3,000 | |
1% | Rs.10,000 | |
0.25% | Rs.15,000 | |
0.50% | Rs. 20,000 | |
- | - | |
Up to 1% | - | |
Up to 2% of loan amount | - | |
L&T Home Loan | 3% | - |
1.5% | Rs.10,000 | |
0.25% | Rs.1,500 | |
Up to 0.50% of loan amount | - | |
0.25% | Rs.1,500 | |
3% | - | |
0.5% | - | |
1% | Rs.10,000 | |
- | Up to Rs.10,000 | |
0.5% | Rs.1,500 | |
0.5% | Rs.20,000 | |
- | Rs.2,500 | |
0.25% of loan amount | - | |
1% | Rs.10,000 | |
Up to 2% | - | |
1% | - | |
0.5% | Rs.3,000 | |
0.50% + GST of loan amount | Rs.10,000 + GST | |
0.25% | Rs.2,000 | |
Nil to 1% + GST | - |
Compare: Home Loan Interest Rate
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Different Types of Fees & Charges on 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:
- Loan-related Fees
- Document-related Fees
- Legal and Government Fees
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.
Loan - Related Fees
- Application Fee: The application fee is a one-time, non-refundable amount charged when you apply for a service. Once approved, this fee is deducted from the processing charges, and you only pay the remaining amount.
- Default Charges: If there's a failure to repay and legal action is required, a collection or recovery charge is applied. This charge is typically based on the actual costs incurred plus an additional penalty percentage.
- Late Payment Penalty: Timely payment of EMIs is crucial. Failing to do so may result in late payment fees, usually ranging between 2% to 3% of the outstanding loan amount.
- Prepayment Fee: If you decide to pay off your entire home loan before the scheduled tenure, a prepayment charge is applicable.
- Partial Prepayment Fee: A partial prepayment charge is applied when you pay off a portion of the remaining amount before the due date.
- Additional Charges: Apart from the mentioned fees, there could be extra charges like Insurance Premiums (if you opt for loan or property insurance), Switching Fees (if you choose to change your home loan type during the tenure), and Repayment Mode Change Fees.
Home Loan Fees and Charges for Documents
In addition to the processing fees, you should anticipate incurring the following fees and charges related to documentation:
- Stamping Fee: This fee is applied during the stamping of legal documents.
- Charges for Income Tax Certificate, Interest Certificate, CIBIL Report, NOC, No Dues Certificate, and Duplicate Copies: While many banks provide these services for free, it is advisable to confirm if your lender imposes any charges and request a detailed breakdown.
- Document Retrieval Charges: When you complete the loan repayment, you'll need all the original papers and titles returned. At this point, you may encounter 'Document Retrieval' charges.
- Fees for Agreement Copy, Duplicate Statements, and Amortisation Schedule Issuance: Certain charges may be associated with clerical activities related to documentation, and you may be required to pay to access these services. Some lenders may waive these charges for specific customers or types of loans, and you can verify this with your lender.
Legal/Government Charges for Home Loan
- Legal Expenses: When obtaining a home loan, you enter into a crucial agreement with the bank outlined in the home loan agreement. The expenses incurred in preparing these legal documents are the responsibility of the applicant. Typically, these charges are based on actual costs.
- Property Verification Fee: Before approving your loan, the financial institution will thoroughly inspect the property you intend to purchase with the loan. This is done to minimize risk exposure, and you may be required to cover the costs associated with the lender's property verification and valuation processes.
- Additional Legal Costs: This encompasses charges necessary for creating a Memorandum of Deposit of Title Deed (MoD), with fees varying based on the property's location. Additionally, the lender will impose a CERSAI Charge, mandated by the government, to prevent misuse of the loan facility for a single property. This charge includes fees for drafting and submitting the loan.
When applying for a home loan, it's crucial to carefully review the terms and conditions to avoid any surprises later. Comparing costs is also advisable to select the most favourable option.
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.
FAQs on Home Loan Processing Fees and Charges
1.What is a home loan processing fee?
A home loan processing fee is the one-time charge for a bank or NBFC levies to process and evaluate your home loan application. It is usually paid upfront and is separate from the loan amount you receive. Lenders may also call it an administrative or application fee.
2.Is GST charged on the home loan processing fee?
Yes, GST applies to the home loan processing fee because it is a service charge, not part of the loan principal or interest. The applicable GST rate is set by the government and may change, so check the current rate before paying. It is added on top of the processing fee quoted by the lender.
3. When do I have to pay the home loan processing fee?
Most lenders collect the home loan processing fee when you submit your application, on approval, or split between the two stages. The exact timing depends on the bank or NBFC's own policy. Check with your lender before applying to know their process.
4. Can I get a waiver on the home loan processing fee?
Some lenders offer a home loan processing fee waiver if you meet their eligibility criteria, such as loan amount, employment type or an ongoing promotional scheme. Approval of a waiver request is entirely at the lender's discretion. Check the fee table above and your lender's current offers to see what applies to you.
5. Will I get my home loan processing fee back if my application is rejected?
Refund policies for the home loan processing fee vary by lender if your application is rejected. Some banks and NBFCs offer a partial refund after deducting costs already incurred, while others do not refund the fee at all. Confirm the specific refund policy with your lender before applying.
6.How do home loan processing fees differ across banks?
Home loan processing fees differ across banks and NBFCs based on the percentage charged, minimum and maximum amounts, and borrower category such as salaried or self-employed. The comparison table above lists the current processing fee structure for major lenders. Always confirm the exact figure with your chosen lender before applying.
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