Rates & lenders
Home Loan Processing Fee & Charges
Lender-wise processing fees, other charges and how to compare them through the APR in the Key Facts Statement.
Updated 27 September 2026 · 17 lenders trackedLowest home loan rate
7.10%
Indian Overseas Bank Home LoanWhat you need to know
Processing fees range from 0.25% at LIC HFL (capped at ₹15,000 – ₹50,000 depending on source) and 0.35% at SBI and PNB (capped at ₹15,000) to up to 3% at some HFCs. 18% GST applies. All charges must be included in the APR shown in your Key Facts Statement.
Lender-wise fees
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Indian Overseas Bank Home Loan | 0.50% of loan (max ₹25,000) + GST | Nil on floating-rate loans |
| Canara Bank Home Loan | 0.50% of loan (max ₹10,000) + GST | Nil on floating-rate loans |
| LIC Housing Finance Home Loan | 0.25% of loan (min ₹5,000, max ₹50,000 per Paisabazaar; BankBazaar shows max ₹15,000) + GST; nil for women borrowers under offer | Nil on floating-rate loans; 2% on fixed-rate loans unless prepaid from own funds |
| PNB Home Loan | 0.35% of loan (min ₹2,500, max ₹15,000) + GST; waived in some festive campaigns | Nil on floating-rate loans to individuals |
| SBI Home Loan | 0.35% of loan + GST (min ₹5,000, max ₹15,000 per Paisabazaar; BankBazaar shows ₹3,000 – ₹12,000); nil for Privilege and Shaurya | Nil on floating-rate loans to individuals (RBI rule) |
| IDBI Bank Home Loan | 0.50% + taxes (aggregator); product page shows ₹2,500 – ₹5,000 + taxes; waived for balance transfer / PMAY | Nil on floating-rate loans to individuals; charges on fixed-rate loans |
| Kotak Mahindra Bank Home Loan | Up to 2% + GST (nil on some online applications) | Nil for individual floating-rate borrowers |
| HDFC Bank Home Loan | Up to 0.50% of loan, minimum ₹4,000 (aggregator) + GST | Nil on floating-rate loans to individuals (RBI rule) |
| PNB Housing Finance Home Loan | Up to 1% + GST | Nil on floating-rate loans |
| Tata Capital Home Loan | Up to 3% + GST (aggregator offer: ₹999 + GST) | Nil if prepaid from own funds; nominal charge if from borrowed funds (per lender) |
| Axis Bank Home Loan | Up to 1% of loan or ₹10,000, whichever is higher, + GST (Asha: 1% – 2% + GST) | Nil on floating-rate loans to individuals (RBI rule); fixed-rate and non-individual loans may attract a charge |
| Bandhan Bank Home Loan | Up to 1% + GST | Nil on floating-rate loans to individuals |
| Sammaan Capital (formerly Indiabulls Housing Finance) Home Loan | 0.50% onwards + charges | Nil on floating-rate home loans |
| YES Bank Home Loan | 1.5% + GST or ₹10,000, whichever is higher (BankBazaar); CreditMantri shows 0.5% or ₹10,000 | Nil on floating-rate loans |
| Truhome Finance (formerly Shriram Housing Finance) Home Loan | As per MITC (aggregator: up to 1.5% + GST) | Nil (per lender) |
| Piramal Finance Home Loan | Up to 3% + taxes | Nil on floating-rate loans to individuals; 2% on fixed-rate loans |
| Aadhar Housing Finance Home Loan | Typically 0.5% – 1% (aggregator: up to ₹3,500 + GST) | Nil on floating-rate loans; 2% + GST on fixed-rate loans |
Other charges to expect
| Charge | Notes |
|---|---|
| Legal & technical (valuation) fees | Charged by some lenders separately |
| Stamp duty on loan agreement / mortgage (MODT) | State-specific |
| CERSAI registration | Small fee for registering the mortgage |
| Rate conversion / switch fee | When moving to a lower rate with the same lender |
| Penal charges | Must be a fixed charge, not added to the interest rate (RBI, from 1 Jan 2024) |
| Prepayment | Nil on floating-rate loans to individuals |
Protections
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
EMI calculator
Frequently asked questions
Is the processing fee refundable if my loan is rejected?
Usually not. Some lenders collect a small login fee upfront and the balance on sanction — check before paying.
Can I negotiate the fee?
Often, yes — especially for balance transfers, government employees (SBI Privilege/Shaurya: nil) and during festive offers.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.