If you are going to take a home loan, then definitely know about these charges, otherwise you will incur a loss of lakhs.

Home loan is very helpful for home buyers. Nowadays most people take home loan. While taking loan, banks give information to the customers about home loan interest rates and processing fees etc. Banks do not provide information about these to their customers. Know about them here.

application fee

Many banks charge you an application fee, also known as a login fee, when you apply for a loan. This fee ranges between Rs 2,500 to Rs 6,500. This is adjusted in your loan processing fee once you get loan approval. But if your loan is not approved then banks do not return it.

Criminal charges

Home loan prepayment is usually not charged, but banks may charge foreclosure charges if you pay the entire outstanding amount to settle the home loan before the completion of the tenure. It ranges between 2% to 6% of the outstanding amount. However, banks have some rules regarding this. Also apply.

switching charge

If you convert a floating rate loan into a fixed rate loan or a fixed rate loan into a floating rate loan, banks charge you a conversion fee for the same. This is also called switching charge. Generally it can range from 0.25% to 3% of the outstanding loan amount. on home loan

recovery fee

If you do not make payment after taking loan from the bank, then 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 value of the property for which you are taking a home loan. These experts evaluate the property on multiple parameters like statutory approvals, layout approvals, building specifications, construction norms etc. Banks charge you for this inspection. Many banks include this fee in the processing fee, while some banks charge it separately.

legal fees

Banks hire legal experts to find out if there are any legal issues with your property. These experts check the title deed, ownership and depreciation history of the property, No Objection Certificate (NOC), occupancy certificate, etc. After this, those experts give their final opinion to the bank whether to give the loan or not. In return for these services, experts are paid a fee, known as legal fees. Banks also apply this charge on your home loan.