The processing fee for a home loan in India is a onetime charge levied by banks and financial institutions to cover the cost of verifying documents, assessing the borrower's eligibility, and processing the loan application. But do you know how to calculate processing fee for home loan? You must multiply the loan amount by the processing fee percentage that your lender has provided to find out the loan processing fee.
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Steps to Calculate Housing Loan Processing Fee
This fee varies across lenders and typically ranges between 0.25% and 1% of the loan amount, subject to a maximum limit set by the bank. Different banks have different processing fees. For example:
SBI: 0.35% of the loan amount + GST (Max ₹10,000)
HDFC: Up to 0.50% of the loan amount + GST
ICICI: 0.50% to 1% + GST
Suppose you apply for a home loan of Rs.50 lakhs. If the bank charges 0.50%, then Processing Fee = (0.50/100) × 50,00,000 = Rs.25,000.
The Goods and Services Tax (GST) is 18% on financial services. GST = (18/100) × 25,000 = Rs.4,500.
Total Processing Fee Payable: Rs.25,000 + Rs.4,500 = Rs.29,500
Some banks wave off or reduce processing fees during festive offers. I hope you found this helpful.
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A home loan processing fee, also known as a loan processing charge, is a one-time fee imposed by lenders when a borrower applies for a home loan. This fee covers the administrative and operational costs associated with processing the loan application. The processing fee can vary from one lender to another. It is important for borrowers to be aware of this fee when considering the overall cost of obtaining a home loan. There is no such home loan processing fee calculator available online.
What is the Processing Fee for Home Loan Calculator?
You must know how much the processing fee is for the bank where you are planning to get a home loan. In general, it is usually between 0.25% and 3% of the home loan amount. Here is a list of banks and their processing fees:
| Bank | Processing Fee (Min %) | Processing Fee Amount (Min) |
HDFC Home Loan |
0.5% |
Rs.3,000 |
SBI Home Loan |
0.4% |
Rs.10,000 |
Axis Home Loan |
1% |
Rs.10,000 |
LIC Home Loan |
Rs.10,000 |
|
IOB Home Loan |
0.5% |
Rs.20,000 |
IDBI Home Loan |
0.5% |
Rs.2,500 |
PNB Home Loan |
0.35% |
Rs.2,500 |
HSBC Home Loan |
1% |
Rs.10,000 |
Union Bank of India |
0.5% |
Rs.15,000 |
However, it will be better if you visit your bank’s website and clarify the fees again.
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How to calculate processing fee for home loan?
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2022-04-04T19:06:22+00:00 2023-10-18T18:53:22+00:00Comment
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