Home Loan Processing Fee

Home loan processing fee is a onetime charge that is levied by a bank on a borrower at the time of loan processing. Most of the banks or HFCs charge a processing fee on their home loan. In most of the cases, processing fee is non-refundable even if the loan doesn't get sanctioned. The amount of processing fees varies from one bank to another. Many banks come out with special zero processing fee home loan schemes under limited period offers.

Compare Processing Charges on Home Loan 2018

Check below for home loan processing fee comparison of top banks and housing finance companies:

BankProcessing Fee as a % of loan amountMinimum and Maximum processing fees*
SBI Home Loan Nil Processing Fee till Dec, 2018
HDFC Home Loan 0.50% Min Rs. 3,000 - Max Rs. 10,000
ICICI Bank Home Loan 0.50% Min Rs. 5,000 - Max Rs. 5,000
Axis Bank 0.50% Min Rs. 2,500 - Max Rs. 25,000
PNB Housing Finance 1.00% Min Rs. 10,000 - Max Rs. 10,000
Bank of Baroda 0.50% Min Rs. 7,500 - Max Rs. 20,000
LIC Housing Finance 0.50% -
Indiabulls - Min Rs. 1,000 - Max Rs. 5,000
Citibank - Min Rs. 10,000 - Max Rs. 10,000
DBS Bank - Max Rs. 10,000
DHFL 0.50% Min Rs. 2,500 - Max Rs. 20,000
Kotak Bank - Max Rs. 10,000
Bank of India 0.25% Min Rs. 1,000 - Max Rs. 20,000
Vijaya Bank 0.50% Min Rs. 1,000 - Max Rs. 20,000
Allahabad Bank 0.40% Max Rs. 50,000
UCO Bank 0.50% Min Rs. 1,500 - Max Rs. 15,000
Reliance Capital 1.00% Min Rs. 3,000 - Max Rs. 6,500
OBC 0.50% Max Rs. 20,000
Jammu And Kashmir Bank 0.25% Min Rs. 500 - Max Rs. 10,000
IDBI Bank 0.50% Min Rs. 2,500
Federal Bank 0.50% Min Rs. 3,000 - Max Rs. 7,500
Dhan Laxmi Bank 1.00% Min Rs. 10,000
Canara Bank 0.50% Min Rs. 1,500 - Max Rs. 10,000
IDFC Bank - Min Rs. 5,000 - Max Rs. 5,000
United Bank of India 0.59% Min Rs. 1,180 - Max Rs. 11,800
Syndicate Bank 0.13% Min Rs. 500 - Max Rs. 5,000
RBL Bank - Min Rs. 5,000 - Max Rs. 15,000
Karur Vysya Bank - Min Rs. 5,000
Indian Overseas Bank 0.53% Min Rs. 8,900 - Max Rs. 13,350
HSBC Bank 1.00% Max Rs. 10,000
Edelweiss 0.25% -
DCB Bank 2.00% Min Rs. 5,000
Corporation Bank 0.50% Min Rs. 1,000 - Max Rs. 50,000
Yes Bank 0.75% Max Rs. 10,000
Bank of Maharashtra 0.50% -
LT Housing Finance 2.00% Min Rs. 4,999
Andhra Bank 0.50% Max Rs. 10,000
Union Bank of India 0.50% Max Rs. 15,000
Standard Chartered Bank 1.00% Min Rs. 5,000 - Max Rs. 10,000
South Indian Bank 1.00% Max Rs. 10,000
PNB 0.50% Min Rs. 20,000 - Max Rs. 50,000
Punjab and Sind Bank 0.25% Min Rs. 1,000 - Max Rs. 15,000
Lakshmi Vilas Bank 0.40% Min Rs. 10,000 - Max Rs. 20,000
Karnataka Bank 0.25% Min Rs. 250
Indian Bank 0.23% Max Rs. 20,381
GIC Housing Finance - Min Rs. 2,500
Dena Bank 0.50% -
Central Bank of India 0.50% Max Rs. 20,000
IIFL 1.00% Max Rs. 10,000

*Applicable GST rate

Frequently Asked Questions

Why is processing fee charged? What does it include?

Bank charges processing fee on home loan to cover its cost for completing loan related formalities which includes expenses incurred for documents collection, credit appraisal and verification etc.

Will the bank refund processing fees, if my loan application gets rejected?

Processing fees is meant to cover the cost of loan processing as incurred by the bank to take a decision to lend to you or not. In majority of the cases, processing fees is non refundable, unless explicitly agreed with the bank otherwise.

What is the lowest processing fee on home loan?

Bank processing fees is typically charged as a certain % of the loan amount. However, banks also specify a minimum processing fee to cover their basic costs of loan application processing as well as cap on processing fees to ensure that the borrowers are not over charged.
At the current rates, Syndicate Bank charges the lowest processing fees of 0.13% of the loan amount. In terms of the maximum fees, ICICI Bank, Indiabulls, IDFC Bank, Syndicate Bank have the lowest processing fees cap of Rs. 5,000 .

What are the other home loan charges in addition to processing fees?

In addition to housing loan processing fees, banks and housing finance company also have some additional charges, which include:
MODT Charges – MODT stands for Memorandum of Deposit of Title Deed that is applicable to all home loan borrowers. This fee is charged for an undertaking that you are submitting your property documents with the bank with your own choice. MODT charges may range from 0.1% to 0.5% of loan amount and may vary from state to state.
Legal and Technical Charges – Legal and technical charges are levied once you submit your property documents to the bank in order to verify your documents legally. These charges may range from Rs. 5,000 to 10,000. Some bank quote a lump sum fees for legal and technical charges including processing fee.
Loan Conversion Charges – This fee is charged at the time of switching your home loan from floating to fixed rate or vice-versa. Loan conversion fee varies from bank to bank. However, most banks charge a conversion fee of 2% of outstanding amount.
Home Loan Prepayment Fees – This fee is charged at the time of paying off entire loan or in parts before the end of tenure is considered as prepayment fee. As per RBI norms, there is no prepayment penalty on housing loan for floating rates. In case of fixed rate loans, lender can charge a prepayment penalty of up to 2%.

Other Charges - Other than the above mentioned charges, there are some other charges related to house loan like late payment charges which are charged if you miss or delay your EMIs and franking charges which are applicable at some states like Maharashtra and Karnataka.

How can I get the lowest processing fees?

You can negotiate for a discount in processing fee, if you are taking a large loan amount or you are an existing customer of the bank. In addition to this, it is advisable to do an online comparison of processing fees of all banks in India and choose a home loan which comes at the lowest all-inclusive costs. Cashbacks and special discounts can further reduce the cost of your home loan.

When do I have to pay loan processing charges?

Typically, the processing charges on home loan are to be paid at the time of documents collection.

Home Loan News - Dec 2018
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.