Applying for a home loan can take you a step closer to getting your dream home. But there are some associated costs you must know. While interest rates are among the most significant costs, the processing fee is another crucial cost.
Read on to know the home loan processing fees levied by various banks and the other fees associated with a home loan.
It is a one-time fee levied by the lender to process the application. Moreover, it varies across lenders and depends on your home loan amount. Here is an overview of the home loan processing fees of some prominent Indian banks.
Bank Name |
Home Loan Processing Fee % |
Amount |
Axis Bank |
1.00% |
Minimum of ₹10,000 |
ICICI Bank |
0.50% - 2.00% |
Minimum of ₹2,999 |
Union Bank of India |
0.50% |
Minimum of ₹15,000 |
YES Bank |
1.50% |
₹10,000 |
Punjab National Bank |
0.35% |
₹2,500 |
State Bank of India |
0.40% |
₹10,000 |
Disclaimer: The above rates & charges are subject to change at the bank’s discretion.
Remember that you will pay the processing fee for home loans after approval. This is a service charge, also known as an “administrative fee”, hence GST of 18% is levied over the final amount. But in some cases, you may have to pay an upfront fee, which may be non-refundable. However, this depends entirely on the lender.
As mentioned, there are numerous home loan charges apart from the processing fee. Knowing these associated costs is crucial to assess your finances properly and be clear about what you need to pay. Here’s a look into some common charges:
Apart from the processing charges, you can expect the following documentation-related fees and charges.
This fee is levied during stamping of legal documents.
Most banks offer these facilities for free. But you must check if your lender levies any charges and ask for the break-up.
When you pay off your loan, you will require all the original papers and titles returned to you. This is when you can be levied with ‘Document Retrieval’ charges.
Documentation-related clerical activities may attract certain charges that you may have to pay for availing of the service. Many lenders waive these charges for select customers and types of loans. You can confirm the same with the lender.
The home loan processing fee is a non-refundable charge. However, there are some lenders who levy zero processing fees, and you can check this while applying.
Most lenders charge processing fees for home loans after approving your application. However, some lenders may ask for an upfront fee when you apply for the loan. It generally gets adjusted from the total processing fee payable. You can confirm the same with the lender.
Since processing charges of home loans are a service charge, they are subject to 18% GST.
This depends on the lender’s policies, and you can confirm the same beforehand. Some lenders do not return the processing fee, while most may offer partial refunds after deducting their incurred expenses.