The various charges that are generally levied by banks in home loans are:
- Processing Fee– This charge is levied at the rate of 0.5 to 1 percent of the loan at the time of applying for the loan, with the documents submitted. Usually this charge is non-refundable, whether your loan is sanctioned or not.
- Administrative Fee- Some banks also charge a fee that is levied at the time when the lender issues you the disbursement letter.
- Pre-payment penalty- When the borrower repays the loan before the stipulated time, most banks usually charge a penalty fee, which is almost 1 or 2 percent of the total amount being prepaid.
- Legal/ Technical Charges: This is a charge; some lenders might recover from you, for all legal or any other verification processes that your application goes through. This charge also depends upon the third party hired for the process.
- Duplicate Statements: The lender sends you a statement that has a detailed break up of the payments made and the outstanding amount against your loan. The lenders send you such statements once a year, which come in handy for your tax filing. Some banks might charge you a minimal fee for the issuance of a duplicate statement.
Delayed payment fee/ bounced cheque: Lenders charge you a fee for delayed fees or bounced cheques, which ranges between 2 to 3 percent of the EMI.