There are many different types of charges that applicant needs to pay while applying for a Loan. The Loan could be anything like Home Loan, Mortgage Loan, car Loan etc
The every type of Loan, the charges might differ a little but more or less remains the same type.
In this article today, we will talk about charges associated with Home Loan and Mortgage Loan.
Charges can be bifurcated in 2 ways. One will be While applying for a loan and second while taking the disbursement.
Home Loan/ Mortgage Loan charges :-
|While Application filing
|Post Sanction/At time of Disbursement
|3) Processing Fee
1) Login Fee/Application Fee- Rs 3000/- to Rs 5000/- ( +gst)
|4) Stamp Duty- 0.30% of Loan amount
2) Legal, Technical Charges- Rs 5000/- to Rs 7000/- approx
|5) Stamp Papers & Notary- At actuals, Approx. Rs 1800/-
6) Notice of Intimation- Rs 15000/- or 0.50% of loan amount whichever is less
When one decides to apply for a Loan at any particular bank, he needs to pay
1) Login Fee or application fee. This amount is non refundable and usually starts from Rs 3000 and goes upto Rs 5000/- This fee is usually taken by Bank to cover underwriting fee, Cibil charges, Verification of address etc. Login fee is usually a part of Total Processing fee being charged by the bank.
2) Legal, Technical Charges. This amount is related to the property that is being mortgaged at a Bank. So if you are going for a Home Loan, Legal check of the property needs to be done. The Bank has appointed lawyers who runs a “Title & Search report” for the said property for a set duration say 13 years or so and issues a report to Bank.
Technical check is done by Valuers or Valuators who are also appointed persons by Bank who visit your property and make sure that the property is in right condition. By right condition they make sure that property is strong enough to stay, to make sure there are no structural changes done, to make sure is constructed as per the Sanction plan issued by approval authority etc.
- Processing Fee. Banks usually have a set fee for any Loan that you apply. It is called Processing Fee. Say the processing fee for a Home Loan at HDFC Bank is Rs 5000/- and while applying there you already paid Rs 3000/- then Balance Processing fee that one needs to pay is only Rs 2000/-
Processing fee is usually the (Total Fees – Login fees Paid
Banks from time to time keep coming up with schemes wherein they just take Login fee and waives of Processing Fee or vice versa.
Processing fee might also be a certain percentage of overall Loan amount.
Say Loan amount is 1 crores and processing fee is 0.20% so Total processing fee will be Rs 20000/-
From here the charges that we will discuss is specific to Maharashtra State. Please note that charges related to Stamp duty, NOI and Franking differs from state to State in India.
Stamp Duty These are the charges or duties that one needs to pay to the state government. As of April 2023, the stamp duty on Loan amount is usually 0.30% of Loan amount.
So if Loan amount is Rs 1 crore, then Stamp Duty will be Rs 30000/-
Notice of Intimation– It is Lien marking charges to safeguard interest of lending institution.
Here the bank informs the registrar that Loan has been funded on said property via a NOI challan. In simple language, Bank informs the registrar legally that the said property is kept mortgaged at his bank and charge on it is created by filing NOI challan.
Currently in April 2023, NOI fee in Maharashtra is Rs 15000 or 0.50% of loan amount (whichever is less)