SBI, HDFC Bank, Axis Bank: How much processing fee are prominent banks charging for home loans?
Home loan processing fees can go as high as 2 per cent of the loan amount plus taxes, according to the charges levied by popular banks. However, some banks offer home loan services at charging 0.35 per cent of the home loan as processing fee.
Home loans are critical credit instruments that aid you in accomplishing your dream of owning a house. Such credit facilities assist in meeting your short-term or long-term financial goals without increasing the financial burden by much. Home loans come with another cost apart from the interest paid. These charges are known as processing fees and vary from bank to bank. Let's check how much processing fees popular banks are charging these days.
State Bank of India (SBI)
The largest public bank in India, SBI, charges a processing fees that equals 0.35 per cent of the home loan regardless of its type. The minimum fee is Rs 2,000 and the maximum amount is capped at Rs 10,000. In addition, one has to pay the applicable GST amount. The bank currently offers the lowest home loans interest rates starting from 8.40 per cent p.a. Furthermore, one can avail special SBI home loan discounts to get an additional concession of up to 65 basis points and the deadline for availing these discounts is December 31, 2023.
The HDFC Bank offers home loans starting at 8.50 per cent. For salaried or self-employed individuals, the HDFC Bank charges a processing fee of 0.50 per cent of loan or Rs 3,000 (whichever is higher). In this case, the minimum retention amount equals 50 per cent of the applicable charges or Rs 3,000 along with the applicable taxes. Self-employed non-professionals need to pay a processing fee of 1.50 per cent of loan or Rs 4,500 (whichever is higher). In this case, the minimum retention amount equals 50 per cent of the applicable charges or Rs 4,500 along with the applicable taxes. The maximum fees is charged on loans under HDFC Bank Reach Scheme and it equals 2 per cent of the loan amount plus applicable taxes.
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Axis Bank charges a processing fee that equals 1 per cent of the housing loan amount plus GST. The minimum processing fee is Rs 10,000. Currently, the bank provides home loans at an interest rate ranging between 9.10 per cent and 9.40 per cent p.a, which is higher than a few banks.
The private sector bank charges a home loan processing fee ranging between 0.50 per cent and 2 per cent of the home loan amount or Rs 3,000, whichever is higher. Additionally, you need to pay for the applicable GST charges along with other statutory levies. The ICICI Bank currently provides home loans starting at 8.65 per cent p.a. while the maximum rate of interest goes up to 9.40 per cent.
Punjab National Bank (PNB)
PNB charges a home loan processing fee that includes 0.35 per cent of the loan amount along with applicable taxes. The minimum fee amount is Rs 2,500 while the maximum amount is capped at Rs 15,000. The bank currently provides home loans at interest rates ranging between 8.50 per cent to 11.05 per cent depending on your CIBIL score and income sources.