What is the processing fee for LIC housing loan?

Last month my father went to HFL bank to avail a home loan and get our first floor constructed. He came and started telling me that he thinks the processing fee is also very high. I did not know anything about the LIC HFL Home Loan processing fee so asked him about it. He said that it is the fee which the bank officials take to bear some administrative costs for processing and sanctioning your loan. It varies from one bank to another but usually remains within 0.5% to 2.50% of the loan amount.

What are the LIC Housing Finance processing fees?

You cannot escape from paying this fee. Sir Sarthak is absolutely correct but I would like to update it with the latest details. My father is taking Rs 8 Lakhs as loan so he explained vividly about it which I would like to share here.

Home Loans ranging from Rs 1 Lakh to Rs 15 Crore has an interest rate starting from 6.90% per annum and the tenure can go upto 30 years so it's great. The applicable LIC housing loan processing fee is upto 0.50% of the loan amount excluding GST.

This is all I have to say about the LIC HFL Home Loan processing fee as of now.

There is a fee for every service and so for availing a home loan. I availed a home loan recently and the LIC processing fee for home loan is between 0% to 0.50% plus GST. Note this fee is not that much. If you avail a home loan of Rs 10 lakhs, you have to pay a processing fee of Rs 500 plus GST. It is true that the processing fee for home loan LIC HFL is greater than that of SBI whose fee is usually within 0.35% but it is okay. After all different banks have different charges, interest rates, schemes and more.

People might say it is refundable but trust me it's not. I asked the officials about it and in most cases, they do not refund it. This usually is decided by the bank from where you have availed the loan. But you won’t get the entire amount refunded. You might relieve a part of the fee or nothing at all. It is better to ask about it before availing your home loan.

What are the LIC housing finance hidden charges?

As for hidden charges, I will say that there is only the processing fee and the GST. I have already mentioned the processing fee rate and for the GST let me tell you that the processing fee attracts an amount GST of 18%. However, these are one-time payments so don’t worry. Ask the officials about these charges and get to know the exact amount you will need to pay.