What is a Home Loan Processing Fee?
05 Jun 2023
Table of Content
What is The Processing Fee for Home Loan?
Banks and lending institutions levy a onetime charge on the different types of Home Loan products. This charge, known as the Home Loan processing fee. It is generally not deductible from the loan amount, and the borrower pays it separately. This is a fee to cover the loan processing cost incurred by the lender or the bank. Some banks may waive such processing charges for a Home Loan as part of special offers.
Bank of Baroda Home Loan Processing Fee
- Document Verification/ vetting charges
- Pre sanction Inspection (Contact Point Verification CPV) charges
- Onetime post inspection charges
- Advocate charges for a legal opinion
- Valuer charges for valuation
- Bureau report charges
- CERSAI charges
- ITR Verification charges
Post Sanction Processing Fees for Home Loan:
| S. No. | Area of Banking Service | Service Charges (excluding GST) w.e.f. 20.06.2019 |
| 1 | Baroda Home Loan & Baroda Home Improvement Loan |
|
| 2 | Baroda Home Loan Top Up | 0.35% Minimum: Rs 5,000 (upfront) Maximum: Rs 12,500 |
| 3 | Takeover of Home Loan (Resident /NRI/PIOs) |
Flat: Rs 8,500 (upfront) |
| 4 | Pre-Approved Home Loan (In- Principle Sanction) | 0.25% - 0.50% Rs 8,500 (upfront). Suppose the borrower submits the property documents within the validity period of a pre-approval letter. In that case, the balance amount of unified processing charges applicable to Home Loan will be recovered from the borrower. |
Charges other than Home Loan Processing Fees
Banks also levy other charges like Home Loan prepayment or loan conversion charges. However, in case of a Bank of Baroda Home Loan, there are no charges applicable if the borrower chooses to prepay the loan amount before the tenure is over.
Impact of Home Loan Interest Rates
There is no correlation between the processing fee and the interest rate. However, your loan amount does factor in calculating the processing fee. A Baroda Home Loan is charged at the prevailing floating rate which is linked to external benchmark of REPO (RBI) or MCLR. The interest rate is linked to the Baroda Repo Linked Lending Rate (BRLLR) and is reset annually based on your bureau score (cibil).
Why Should You opt for Bank of Baroda for Home Loans
With a Bank of Baroda Home Loan, you can enjoy a free credit card and concession of 0.25% for car loans . You can also opt for a group credit life insurance cover when you apply. This cover protects the family against the borrower's death, and the family is not required to repay the Home Loan to the extent of the claim amount. You can pay the premium for the cover along with the EMIs.
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Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
What is a home loan Top-up-edited
It's a new year and a new normal in the lives of most people. Yet Buying a home of one's own continues to be one of the biggest aspirations. However, with skyrocketing prices of real estate, property purchase remains out of the reach of many individuals. For this very reason, homebuyers are now increasingly opting for Home Loans to fund their dream house purchase. Banks and several lenders these days offer housing finance at competitive rates of interest, subject to several terms and conditions.
Understanding Home Loan Prepayment - Rules, Benefits, and Charges
If you are looking to reduce your debt burden, you should consider prepayment of home loan. As soon as your finances improve, you can choose to finish your home loan, either in part or in full. If you repay your home loan completely or in part before the scheduled tenure, it is called prepayment of home loan.
