Top banks’ home loan processing fees: Check which bank is charging lowest fee
home loan, there are various fees that apply to the loan. These fees differ between lenders such as banks, housing finance firms, and non-banking financing companies, with some levying fees separately and others that club fees. While some fees are tied as a fixed percentage of the house loan balance, others are not. Remember that not every borrower has to pay the same processing fee when availing a home loan.
Processing fee
Through the processing charge, a lender is able to recover all of its credit underwriting-related expenses. Some lenders impose a processing cost that is flat, while others often charge a variable processing fee that might reach 2% of the loan amount.
Here are tops banks and their processing fees charged for a home loan. (It may differ if the bank hikes or offers festive discount; Source: Compiled by ETIG; Interest rates as on September 7, 2023, Home loan rates are repo linked lending rates or RLLR)
HDFC Bank
Full list of bank home loan interest rates: Check which bank is offering lowest interest rate on home loan
HDFC Bank offers a home loan interest rate between 8.50% to 9.40% for salaried employees. The processing fee applicable is up to 0.50% of the loan amount or Rs 3,000 whichever is higher, plus applicable taxes.
ICICI Bank
ICICI Bank offers a home loan interest rate between 9.25% to 9.90% for salaried employees. The processing fee applicable between 0.50% to 2% subject to minimum of Rs.1,500.
Punjab National Bank
PNB offers a home loan interest rate between 8.50% to 10.10% for salaried employees. The bank charges processing fee of 0.35 % (min. Rs.2500/- max. Rs.15000/-) plus documentation charges Rs.1,350.
SBI Term Loan
SBI offers a home loan interest rate between 8.70% to 9.65%
