Home loan is very helpful for home buyers. Nowadays most people take home loans. While taking a loan, banks inform customers about home loan interest rate and processing fees (Home Loan interest rates and processing fees) etc. Banks do not inform customers about them. Learn about them here.
Application fee
When you apply for a loan, many banks charge from you, which is also called login fee. This fee is between 2,500 to 6,500 rupees. After getting the loan approval, it is adjusted to your loan processing fee. But if your loan is not approved then the banks do not return it.
Certified fee
Home loan pre -payment is usually not charged, but if you pay the entire outstanding amount to settle the home loan before the completion of the tenure, the banks can impose criminal fee. It ranges between 2% to 6% of the outstanding amount. However, banks have some rules regarding this. Also apply.
Switching charge
If you convert floating rate loan in fixed rate loan or fixed rate loan into floating rate loan, banks charge you the conversion fee in exchange for it. It is also called switching charge. Usually it can range from 0.25% to 3% of the outstanding loan amount. On home loan
Recovery fee
If you do not pay after taking a loan from the bank, the bank declares you a defaulter. In such a situation, the bank takes action against the customer for recovery. The amount spent in this process is recovered from the customer.
inspection fee
A team of experts comes from the bank to assess the price of the property for which you are taking a home loan. These experts evaluate property on many parameters such as legal approval, layout approval, building specifications, construction criteria, etc. Banks charge you for this inspection. Many banks include this fee in processing fee, while some banks charge it separately.
legal fees
If there is a legal problem in your property, then banks appoint legal experts to get information about it. These experts check the title deed, the ownership of the property and the history of depreciation, the NOC (NOC), the authorized certificate etc. After this, they give their final opinion to the expert bank whether to give a loan or not. In exchange for these services, experts are paid a fee, known as a legal fee. Banks also apply this fee to your home loan.
