The Fees and Expenses to process a Home Loan varies from Bank to Bank. We have given a overview of the expenses below.
All of these expenses may not be applicable to you. Please consult with the Executive assigned to you for precise details with respect to the Bank you have chosen.
- Sanctioning Expenses
- Processing Fees
- Usually 50% of the Processing Fees is collected before the file is logged in.
- For details regarding total processing fees of most of the Banks, kindly check the Interest Rates section and the Compare Banks section of this website.
- TDS Deduction
- This is applicable for cases with Property value equal to Rs. 50 /- lakh or above.
- Buyer has to deduct 1% of the total Property cost and pay the amount to the Government.
- The proof of payment has to be provided to the Bank and Seller immediately after Sanction of the Loan.
- Legal and Technical Expenses
- Few Banks sometimes collect separate fees for processing the Legal and Technical aspects of the Property.
- This amount varies from Rs. 2,000 /- to Rs. 6,000 /-.
- Disbursement Expenses
- Balance Processing Fees
- Most of the Banks collect the balance 50% processing fees before the Loan is disbursed (and after it is sanctioned).
- CERSAI Fees
- Banks collect a CERSAI fees from all customers. This is usually Rs. 562 /-.
- MODT / EM Charges
- As part of the disbursement process, you will have to process the Memorandum of Deposit of Title Deeds / Equitable Mortgage at the time of Registration of the Title Documents.
- The charges involved are decided by the Government of that State.
- Fees is paid to the SRO where the Registration is carried out.
- The fees is usually 0.5% of the Loan Amount.
- SRO may also charge a separate Processing Fees of around Rs. 5,000 /- per case.
- These charges can be cross checked with your SRO or the Executive assigned to your file can guide you with these.
- Stamps, Notary & Others
- As part of the disbursement procedure, the Loan Agreement will have to be printed on Stamp papers of various denominations.
- In most cases these documents are Notarised.
- Certain Banks also request on obtaining an SRO Certificate for a loan amount of higher than Rs. 25 lakh.
- Above charges varies from case to case and usually does not exceed Rs. 2,500 /- per case.
- Document Handling Charges
- In certain cases, you may have to pay up to Rs. 3,000 /- to the Document Handling Lawyer.
Please note that the above expenses are for the purpose of giving you an idea and to prepare you financially to process your Home Loan.
The amounts may vary from time to time. We request you to kindly check on these expenses with the executive assigned to you.
