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Indians widely seek a home loan to fulfil their dreams of owning their dream home. Home loans are one of the major lending products for every major bank and NBFC in India. They offer various home loan products like home loans to purchase a new/old residential property, home loans to purchase a residential plot, top-up home loans, home loans balance transfer and more.
Interest rates for home loans in India are currently averaging at 8.5%. You can learn more about home loans, interest rates, eligibility and application process on our CreditMantri Home Loans page. Check it out!Apart from interest rates, there are also a host of few other home loan charges and fees. Of which, Home Loan Processing Fees is a major component.
Are you looking for the best Home Loan with Competitive Interest Rates? View and Compare Home Loans from various lenders in one place. Check out our Home Loans Page now!
What are Home Loan Processing Charges? Why is it charged?
- Home loan processing fees are charged by the bank to carry out various administrative functions related to a home loan processing.
- These functions include underwriting, property survey, income and employment verification, fetching credit reports, and similar functions.
- Home loan processing fees are charged as a percentage of your loan amount and is paid upfront at the time of home loan amount disbursal.
- Home loan processing fees from various banks and NBFCs range between 0.25% - 1.5% of the loan amount; with Indian Bank charging the lowest processing fees of 0.25% and YES Bank charging the highest at 1.5% of the loan amount.
- There are also banks and NBFCs that charge ZERO home loan processing fees, but it is usually as a festival offer and is limited to a certain period.
Home Loan Processing Fees 2025 from Top Banks & NBFCs in India
Bank Name | Processing Fees |
|---|---|
SBI Home Loan | Up to 0.35% of the loan amount + applicable GST *Zero for SBI approved projects |
HDFC Home Loan | Up to 0.50% of the loan amount + GST or Rs. 3,000 + GST (whichever is higher) |
ICICI Bank Home Loan | 0.50% - 2.00% of the loan amount + GST or Rs. 3000/- + GST whichever is higher |
Axis Bank Home Loan | Up to 1% of loan amount + GST Min. of Rs.10,000 |
Bank of Baroda Home Loan | Up to 0.50% of the loan amount + GST |
Kotak Mahindra Home Loan | Up to 0.50% of the loan amount + GST |
Deutsche Bank Home Loan | Up to 1% of the loan amount + GST |
RBL Home Loan | 1.5% of loan amount + GST |
IDFC Home Loan | Up to 0.50% of the loan amount + GST |
Yes Bank Home Loan | 1.5% of the loan amount + GST |
IDBI Home Loan | 0.50% of loan amount + GST |
Bank of India Home Loan | 0.25% of the loan amount + GST Min. Of Rs.2500 & Max. Of Rs.20000 |
Union Bank of India | 0.50% of the loan amount + GST Max. Of Rs.15,000 |
Bank of Maharashtra | 0.25% of the loan amount + GST Max. Of Rs.25000 |
Indian Overseas Bank | Up to 0.50% + GST Max. Of Rs. 25,000 |
Indian Bank | Up to 0.25% of the loan amount + GST |
Central Bank of India | Up to 0.50% of the loan amount + GST Maximum of Rs. 20,000 |
Federal Bank | 0.50% of loan amount + GST Minimum of Rs. 3,000 – Rs. 7,500 |
Canara Bank | 0.50% of the loan amount + GST Minimum of Rs.1,500 Maximum of Rs.10,000 |
PNB Housing Home Loan | 1% of the loan amount + GST |
Tata Capital Home Loan | Starts from 0.5% of the loan amount + GST. |
LIC Housing | 0.50% + GST |
Aadhaar Housing | 0.50% of the loan amount + GST |
Fullerton Grihashakti | Up to 0.25% of the loan amount + GST |
Aditya Birla Capital Home Finance | Up to 1% of the loan amount + GST |
Repko Home Finance | 1 % of loan amount + GST |
Note: Currently, GST is charged at 18% of the processing fees amount
Disclaimer: The processing fees, and all other information specified above are as of when this page was written and are subject to change. For exact information, contact the bank or refer to the official website.
Calculate your Home Loan EMI before applying for that loan. Use our Home Loan EMI Calculator!
Other Home Loan Fees & Charges 2025
Apart from the home loan mortgage charges & processing fees, one must pay a few other fees & charges to process their home loan.
Legal and Government Fees
These fees encompass all legal costs related to the preparation of the home loan agreement, including the verification of necessary documents and the drafting of contracts. Typically, legal advisors or lawyers manage this process, and the fees can vary from Rs 5,000 to Rs 10,000 based on the lender.
Late Payment Fees
If you miss your EMI payment deadline, a penalty will be applied. Usually, the late fee is about 2% to 3% of the overdue EMI each month until the payment is made.
Document Charges
Borrowers are often required to pay for various documents needed during the home loan process, which include:
CERSAI Fees
The Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) ensures that properties are not used as collateral for multiple loans. The CERSAI fee generally falls between Rs 50 and Rs 500, depending on the loan amount.
Stamping charges
- This includes charges for -
- Fee for agreement copy
- No Objection Certificate (NOC) charges
- CIBIL report fees
- Income tax certificate charges
- Duplicate NOC fees
Memorandum of Deposit (MOD) Charges
This fee pertains to the deposit of your title deeds with the bank as collateral for your loan. MOD charges differ by state, with Maharashtra imposing a fee of 0.3% of the property's value.
Prepayment Charges
Should you choose to pay off your loan before its term ends, prepayment charges may be applicable. Most banks waive these fees for floating-rate loans, but for others, they can range from 2% to 6% of the outstanding loan amount.
Conversion Charges
If you want to change from a fixed interest rate to a floating rate or the other way around, a conversion fee will apply. This fee can either be a flat rate or a percentage (0.25% to 3%) of the outstanding loan balance.
Valuation or Inspection Fees
Lenders may impose a fee to evaluate and assess the property you are purchasing as collateral. The specific fee will depend on the actual costs incurred during the property inspection.
Notice of Intimation (NOI) Charges
In states like Maharashtra, a Notice of Intimation (NOI) is necessary as part of the home loan process.
Did you know that your Credit Score plays a vital role in the Home Loan process? Have you checked your latest Credit Score? Check it now on CreditMantri!
Home Loan Processing Fees & Charges – FAQs:
1. Should I pay Home Loan Processing Fee for my home loan?
Yes, home loan processing fees is charged by all banks and NBFCs at the time of processing your home loan. It is a one-time fee that is paid at the time of your home loan disbursal.
2. Is there any home loan with zero processing fees?
Though various banks and NBFCs offer processing fees waiver offer during festive seasons, they are limited to a certain period, and one should be aware of them to take advantage of such offer. If not, on regular home loans, processing fees is to be paid.
3. How much is the Home Loan processing fees?
In 2025, home loan processing fees averaged at 0.25% - 1.5% of the loan amount. There is also a 18% GST on the processing fees amount to be paid.
4. Can I get tax rebate on the home loan processing fees paid?
Tax rebate can be availed for the registration charges and stamp duty paid on your house registration. You can also avail tax rebate on the home loan principal and the interest component to certain extent as stipulated by the IT Act, but not on the processing fees.
5. What are some other home mortgage fees and charges I need to pay to process my home loan?
Apart from your home loan processing fee, you also need to pay document charges, legal charges, CERSAI fees, MOD charges, municipal charges, mortgage charges, and more. Check with your bank on the complete list of fees and charges to be paid during your home loan processing.
6. Are there any banks or NBFCs that offer home loan without processing fees?
Home loan processing fees are generally charged by lenders to cover various costs associated with processing your home loan application. So, every applicant must pay it. However, some lenders offer seasonal festive promotions where they waive these processing fees.
Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.