{"id":7261,"date":"2022-02-24T17:39:53","date_gmt":"2022-02-24T12:09:53","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=7261"},"modified":"2022-05-24T10:25:03","modified_gmt":"2022-05-24T04:55:03","slug":"charges-home-loan","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/","title":{"rendered":"Home Loan Processing Fee, Charges And Documentation In 2022 &#8211; Explained"},"content":{"rendered":"\n<p>Getting a <a href=\"https:\/\/www.tickertape.in\/blog\/home-loan-tax-benefit\/?utm_source=blog&amp;utm_medium=article\">home loan<\/a> entails more than paying the EMIs. Apart from the loan amount, borrowers have to pay several other charges, some fixed and some a percentage of the loan sum. The charges typically vary across lenders (banks, NBFCs, or <a href=\"https:\/\/www.tickertape.in\/blog\/best-housing-finance-companies-in-india\/\">housing finance companies<\/a>). Since these charges add to the home loan\u2019s total cost, the borrower must know about them. Let us dive right in!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#20-charges-you-have-to-pay-if-you-avail-of-a-home-loan\" title=\"20 charges you have to pay if you avail of a home loan\">20 charges you have to pay if you avail of a home loan<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Home-loan-processing-fee\" title=\"Home loan processing fee\">Home loan processing fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Login-fee\" title=\"Login fee\">Login fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Prepayment-charge\" title=\"Prepayment charge\">Prepayment charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Conversion-charge\" title=\"Conversion charge\">Conversion charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Penal-interest-rate\" title=\"Penal interest rate\">Penal interest rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#NDCNOC-charge\" title=\"NDC\/NOC charge\">NDC\/NOC charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Agreement-copy-fee\" title=\"Agreement copy fee\">Agreement copy fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Interest-certificate-charge\" title=\"Interest certificate charge\">Interest certificate charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Income-tax-certificate-charge\" title=\"Income tax certificate charge\">Income tax certificate charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Charge-for-issuance-of-photocopy-of-title-documents\" title=\"Charge for issuance of photocopy of title documents&nbsp;\">Charge for issuance of photocopy of title documents&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Credit-score-report-charge\" title=\"Credit score report charge\">Credit score report charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Fee-for-changing-home-loan-tenure\" title=\"Fee for changing home loan tenure\">Fee for changing home loan tenure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Fee-for-issuance-of-amortisation-schedule\" title=\"Fee for issuance of amortisation schedule&nbsp;\">Fee for issuance of amortisation schedule&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Home-loan-account-statement-charge\" title=\"Home loan account statement charge\">Home loan account statement charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Document-retrieval-charge\" title=\"Document retrieval charge\">Document retrieval charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Legal-charges\" title=\"Legal charges\">Legal charges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Inspection-charge\" title=\"Inspection charge\">Inspection charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#MoD-charge\" title=\"MoD charge\">MoD charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Stamp-duty-and-registration-charge\" title=\"Stamp duty and registration charge\">Stamp duty and registration charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#CERSAI-charge\" title=\"CERSAI charge\">CERSAI charge<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/charges-home-loan\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"charges\"><span class=\"ez-toc-section\" id=\"20-charges-you-have-to-pay-if-you-avail-of-a-home-loan\"><\/span><strong>20 charges you have to pay if you avail of a home loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the several charges you have to pay if ever you decide to avail of a home loan:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Home-loan-processing-fee\"><\/span><strong>Home loan processing fee<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The lender charges a processing fee to cover the verification and assessment costs related to evaluating the home loan application. It is a one-time fee that you have to pay upfront to the lender. While some lenders have a flat processing fee, others may charge a fee of up to 2% of the home loan amount. Few lenders have zero processing fees as well.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Login-fee\"><\/span><strong>Login fee<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is a non-refundable fee some lenders charge even before approval of the home loan. You have to pay the processing fee minus the login fee upon loan approval. It typically ranges between Rs. 2,500 to Rs. 6,500 and is commonly known as administrative or application fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prepayment-charge\"><\/span><strong>Prepayment charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay this fee if you pay off the entire home loan amount before the end of your tenure. It ranges between 2-6% of the outstanding amount. However, the fee does not usually apply to individual borrowers and floating-rate loans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conversion-charge\"><\/span><strong>Conversion charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A conversion charge or switching fee is applicable if you convert your fixed-rate package to a floating rate and vice versa. It can range between 0.25-3% of the balance amount or the lender may fix an amount. Conversion charge also applies if you convert your current floating-rate package to a revised one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penal-interest-rate\"><\/span><strong>Penal interest rate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay a late fee if you delay your EMI payments. The fee ranges between 2-3% of the delayed amount each month until you fulfil the payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NDCNOC-charge\"><\/span><strong>NDC\/NOC charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay a fee to get an NDC (No Dues Certificate) or NOC (No Objection Certificate). The fee may range from zero to Rs. 500 per request. Also, the cost of revalidation of the NOC by the bank can be around Rs. 100 to Rs. 500. A similar fee range applies to duplicate NOC or NDC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Agreement-copy-fee\"><\/span><strong>Agreement copy fee<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is the fee you have to pay to the bank if you want a copy of the loan agreement. The fee ranges from zero to Rs. 500.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest-certificate-charge\"><\/span><strong>Interest certificate charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay a fee in exchange for a certificate of the interest amount you paid while repaying the loan. The fee can range from zero to Rs. 500 per request.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Income-tax-certificate-charge\"><\/span><strong>Income tax certificate charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is the charge banks levy for providing the final or provisional <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> certificate towards your home loan principal repayment and interest. The fee can range from zero to Rs. 500 each time you request a certificate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Charge-for-issuance-of-photocopy-of-title-documents\"><\/span><strong>Charge for issuance of photocopy of title documents&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay anything between 0 to Rs. 1,000 for each request for a photocopy of your property\u2019s title documents. The bank keeps the originals until you completely repay the loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit-score-report-charge\"><\/span><strong>Credit score report charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Your <a href=\"https:\/\/www.tickertape.in\/blog\/get-an-instant-loan-without-credit-score\/\">credit score<\/a> will decide if the lender approves your home <a href=\"https:\/\/www.tickertape.in\/blog\/things-to-keep-in-mind-while-applying-for-a-loan\/?utm_source=blog&amp;utm_medium=article\">loan<\/a> request. So, if you want to assess your prospects, you may request the bank to issue a copy of the credit report. The charge may vary between zero to Rs. 1,000 per request.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fee-for-changing-home-loan-tenure\"><\/span><strong>Fee for changing home loan tenure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You may wish to change the loan repayment tenure due to financial stress or any reason. In that case, the bank will charge a fee for extending the tenure. The same applies if you wish to reduce the term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fee-for-issuance-of-amortisation-schedule\"><\/span><strong>Fee for issuance of amortisation schedule&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to pay between zero to Rs. 250 every time you seek your loan tenure\u2019s detailed amortisation schedule.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Home-loan-account-statement-charge\"><\/span><strong>Home loan account statement charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you need a copy of your loan account statement, you may have to pay zero to Rs. 250 per request. It is also known as the Statement of Account Issuance fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Document-retrieval-charge\"><\/span><strong>Document retrieval charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Upon loan closure, you have to pay between Rs.500 to Rs. 5,000 to get back all the original property documents back from the lender.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal-charges\"><\/span><strong>Legal charges<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Assessing the legal validity of sale deeds and creating home loan agreements involves certain legal expenses that you may have to pay in the form of legal fees. The fee typically depends on the amount charged by the lawyer or legal advisor.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inspection-charge\"><\/span><strong>Inspection charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The inspection charge is a fee the bank levies for the legal inspection and valuation of the property you are buying. The fee you have to pay depends on the actual charges the lender incurs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MoD-charge\"><\/span><strong>MoD charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Memorandum of Deposit of Title Deed (MoD or MODT) is proof that your property\u2019s ownership papers are with the bank as collateral. It comes in a non-judicial stamp paper, and the fee for the same varies across states.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stamp-duty-and-registration-charge\"><\/span><strong>Stamp duty and registration charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per state laws, registration of the MODT incurs <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-stamp-duty-and-why-pay-it\/\">stamp duty<\/a> and registration charges. The charges vary across states and are usually 0.10-0.20% of the loan amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CERSAI-charge\"><\/span><strong>CERSAI charge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You pledge your property as collateral with a bank\/financial institution when you purchase the property by applying for a home loan. It requires registration with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). The registration draws a charge of Rs. 50 to Rs. 500.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you apply for a <a href=\"https:\/\/www.tickertape.in\/blog\/are-home-loan-tax-deductions-beneficial\/?utm_source=blog&amp;utm_medium=article\">home loan<\/a>, the last thing you\u2019d want is the sheer number of hidden charges catching you unaware. Acquaint yourself with the fees you need to pay before and after loan approval. However, since charges vary with borrowers, ensure that you study your loan documents carefully before finalising the deal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are home loan charges &#038; processing fees too high? Understand what are all the expenses &#038; fees applicable while availing a loan for your house. Click here to know more!<\/p>\n","protected":false},"author":54,"featured_media":6640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[8,1754],"tags":[1380,1381,1382],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/01\/5-1-3.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7261"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=7261"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7261\/revisions"}],"predecessor-version":[{"id":8497,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7261\/revisions\/8497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6640"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=7261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=7261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=7261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}