When evaluating residence loans from completely different lenders, most potential debtors limit their comparability criterion to residence mortgage rates of interest. Nonetheless, candidates must incur numerous prices and costs throughout the mortgage utility course of in addition to throughout the mortgage reimbursement tenure. For instance, lenders cost processing charges, administrative charges, and many others throughout the mortgage processing stage. Debtors incur event-based prices like conversion charges, penal charges, pre-payment/foreclosures charges (in case of fixed-rate residence loans), and many others on availing particular providers or failing to fulfill loan-related commitments. Information of those prices may also help debtors in managing their residence loans higher.
Dwelling Mortgage Processing Charges provided by High Banks and HFCs in India
Identify of Lender | Processing price (% of the mortgage quantity) |
State Financial institution of India |
|
HDFC |
|
Axis Financial institution | As much as 1% (Minimal Rs 10,000) |
ICICI Financial institution | As much as 2% |
Kotak Mahindra Financial institution | As much as 1% (50% off on processing charges for digital purposes) |
PNB Housing Finance | As much as 1% |
Punjab Nationwide Financial institution | NIL as much as thirty first March 2025 |
Financial institution of Baroda | 0.25%-0.50% of mortgage quantity (Rs 8,500-Rs 25,000) |
Union Financial institution of India | Waived off |
IDFC First Financial institution | As much as 3% |
L&T Housing Finance | As much as 3% |
Godrej Housing Finance | As much as 3% |
Tata Capital | As much as 2% |
LIC Housing Finance | 0.25% (Minimal Rs 5,000 to Most Rs 50,000) |
Charges are up to date as of 15 October 2024

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Essential Charges and Fees of Dwelling Mortgage
Mortgage Processing Fees
Processing price refers back to the one-time cost levied by lenders on candidates for processing their residence mortgage purposes. This price is mostly non-refundable. Relying on the lender, this price can go as much as 3% of the mortgage quantity. Some lenders additionally waive off processing charges throughout festive season presents or different events. As an illustration, the processing price of a PNB Dwelling Mortgage is NIL until 31 March 2025.
Partial Prepayment Fees
This cost is levied as a penalty in case a borrower prepays a part of the mortgage quantity. Nonetheless, floating-rate residence loans are exempted from prepayment charges, if taken by people. In case when people go for twin charge residence mortgage, lenders can levy a prepayment penalty, throughout the mounted rate of interest interval. As soon as the mortgage begins accruing a floating charge, the banks & HFCs can not levy the prepayment penalty.
Foreclosures Fees
This cost is levied as a penalty if a borrower repays their full mortgage quantity earlier than the tip of its time period. Some lenders don’t enable foreclosures of the mortgage account till the reimbursement of a pre-determined variety of EMIs. Nonetheless, RBI laws have barred banks and Housing Finance Firms from levying foreclosures prices on floating rates of interest. Lenders providing residence loans at mounted charges are free to determine whether or not to cost foreclosures charges or not.
Penal prices/ Default curiosity/Late fee/ Overdue (monthly)
Defaulting residence mortgage month-to-month installments result in the levy of penal prices on unpaid EMIs. This cost can both be a hard and fast quantity or a pre-determined share of the unpaid EMI(s). As an illustration, IDFC First Financial institution prices 2% monthly of the unpaid EMI or Rs 300 whichever is greater.
Conversion Fees
Banks and NBFCs cost conversion charges on changing their fixed-rate residence mortgage to floating-rate residence mortgage or vice versa or from changing the present mounted rate of interest to a revised one. As an illustration, within the case of HDFC Dwelling Mortgage, the choice for switching loans from mounted to floating charge is allowed on fee of 0.50% of the principal excellent on the time of conversion or Rs 50,000 plus taxes, whichever is decrease.
Administrative Fees
Many lenders cost an administrative price along with their processing price. This non-refundable price is charged to cowl the bills incurred throughout authorized verification, examination of paperwork and valuation of the property. Debtors ought to evaluate this price whereas evaluating their residence mortgage choices. Favor lenders these whose administrative prices are mounted or have an higher cap on them.
Additionally Test: Dwelling Mortgage EMI Calculator