Home Loan Processing Fees and Charges

Home loan processing fees are non-refundable charges that you have to pay at the time of your home loan application. These are the charges towards the services provided by the lender. Each financial institution has a different processing fee for home loan. Kotak Mahindra Bank charges 0.5 % processing fee for salaried and 1 % for self-employed applicants. This is among the lowest home loan processing fee in India. 

In the absence of salary slips, especially for non-salaried individuals, applicants may submit bank statements and complete ITR details as required by the lending bank. So, although salary slips improve your chances to get a home loan, it’s not mandatory

No, the home loan processing charges are non-refundable in nature. It means, that if the bank rejects a loan application, the amount will not be refunded. That being said Kotak Mahindra Bank’s home loan processing fee is among the lowest. For a salaried applicant, it is 0.5 %, while for a self-employed applicant it is 1 %. 

The processing fee for home loan is a percentage charged on the loan amount that you have applied for. You have to pay it during the time of the application. These home loan processing fees are non-refundable, i.e. the bank will not refund the amount, whether the loan application is approved or not.

No, the applicant has to pay a processing fee at the time of the home loan application. It is a percentage of the principal loan that you have applied for and is non-refundable. However, with Kotak Mahindra Bank you have to pay only a minimal home loan processing fee, i.e., 0.5 % for salaried and 1 % for self-employed applicants.

To process your home loan application, the bank charges a non-refundable processing fee. Every financial institution charges its own home loan processing fee while applying for a loan or for a home loan balance transfer. Kotak Mahindra Bank offers one of the lowest home loan processing fees; 0.5 % for salaried and 1 % for self-employed applicants.

When you pay all of your monthly installments before the end of the tenure, it is called foreclosure. On foreclosing the loan, the bank levies a charge on the applicant that they have to pay to foreclose the loan. These charges depend on the bank that has sanctioned the loan. Foreclosure charges are a part of the various types of home loan processing fees that a bank charges.

Unlike a foreclosure, a prepayment is when you pay a part of the outstanding home loan amount in advance. The prepayment charge varies from bank to bank, and also on the type of applicant who has taken the loan. One of the home loan processing charges, prepayment of your loan comes at a cost. So, before going for it, best is to understand how much amount you have to pay.

The home loan processing fee is paid by the borrowers at the time of their home loan application. After this, there are various fees and charges that one might have to pay. For example, when you need copies of any loan-related documents or in case of prepayments and foreclosures or even penalties are all included in the home loan processing charges.

The home loan processing fees and charges to be paid when borrowing a loan from Kotak Mahindra Bank are as follows:

• Processing fee
• Requesting for Interest Certificate, Account Statement and Amortisation Schedule
• Copy of any documents like NOC or Property documents
• Changing repayment mode or swapping account
• Switch fees
• Prepayment and Foreclosure charges
• Penalties on late payment or instrument dishonour

An 18 % GST is charged on the home loan processing fee. Kotak Mahindra Bank charges a processing fee of 0.5 % in the case of salaried professionals, while for non-salaried individuals it is 1 %. This is a non-refundable charge that the applicant has to pay at the time of loan application.

The mortgagor pledges their property's title deeds or ownership documents as collateral security for the equitable mortgage and registered mortgage to the mortgagee or their agents while availing a loan. While equitable mortgage stamp duty may not always be required, increasing instances of housing loan fraud have led several states to make registration mandatory to ensure excellent protection for both parties involved.

What is the meaning of equitable mortgage? Also known as Mortgage by deposit of title deeds, it is a process where a borrower deposits their property's title deed with the lender as security for a loan until it is repaid. Equitable mortgage charges create a charge on the property without the need for legal procedures. Although no written documentation is required, an agreement signed by both parties and notarized is necessary.

The Limitation Act sets the time frame for an equitable mortgage at 12 years under Article 62. This means the lender has up to 12 years to take legal action against the borrower in case of default.

To create a home loan mortgage registration, the borrower provides the lender with the title deed of immovable property as security until the loan is fully repaid. This does not involve any legal process, but a memorandum of deposit of title deeds is usually executed between both parties to formalise the arrangement.