What is the penalty for a late home loan EMI?

Lenders may levy penal charges when an EMI remains overdue and may also impose charges when a payment fails. The amounts and conditions vary by lender. Check your loan agreement and the lender's current schedule of charges for the applicable fees.

What is a Key Fact Statement (KFS)?

A Key Fact Statement is a document that summarises key terms and costs associated with a loan, including applicable fees and charges. Review the KFS and loan agreement to understand the costs disclosed by the lender before accepting the loan.

What charges apply when I transfer my home loan to another bank?

When transferring a home loan, the new lender may charge a processing fee and other applicable fees under its terms. Processing fees vary: for example, PNB Housing Finance charges up to 1% of the loan amount, while Tata Capital charges up to 3% plus GST. Any additional legal, valuation, mortgage or registration charges depend on the transaction and applicable rules. Check the charges with both lenders before proceeding.

Home Loan Processing Fees & Charges – Complete List (2026)

Buying a home is a big financial decision, and understanding the costs involved can help you plan your budget better. When applying for a home loan, you need to pay processing fees in addition to the interest amount. The processing fee varies by lender, loan amount, and customer category, and applicable GST or other statutory charges may also apply.

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As of October 2026, home loan processing fees differ significantly across banks and Housing Finance Companies (HFCs). Some lenders charge a percentage of the loan amount, while others have fixed fees or minimum and maximum limits.

Home Loan Processing Fees of Top Banks & HFCs (Oct 2026)

Lender	Processing fee (+ GST)
HDFC Bank	Salaried / Self-employed Professional Up to 0.50% of the loan amount or Rs. 4,000/-, whichever is higher, plus applicable taxes. For Self-Employed Non-Professionals Up to 1.50% of the loan amount or Rs. 5,000/-, whichever is higher, plus applicable taxes. For NRI Loans Up to 1.50% of the Loan amount or Rs. 4,000/-, whichever is higher, + applicable taxes / statutory levies and charges. For Value Plus Loans Up to 1.50% of the Loan amount or Rs. 5000/- whichever is higher + applicable taxes / statutory levies and charges. For HDFC Reach Scheme Up to 2.00% of the loan amount+ applicable taxes / statutory levies. Processing Fee is non-refundable in nature
ICICI Bank	Up to 2% of Loan Amount
Kotak Mahindra Bank	Up to 2% of loan amount (plus taxes and any other applicable statutory dues)
SBI	For Salaried Customers: 0.35% of the loan amount, minimum Rs.5,000/- and maximum of Rs. 15,000/- plus GST For Non-Salaried Customers: 0.35% of the loan amount, minimum Rs.5,000/- and maximum of Rs. 18,000/- plus GST
Bank of Baroda	For all channels: Loan amount up to Rs.50.00 lacs- 50%, Min: Rs.8,500/- and Max: Rs.15,000/- Loan amount greater than Rs.50.00 lacs- 25%, Min: Rs.8,500/- and Max: Rs.25,000/- Takeover: Flat Rs.8,500/-
Axis Bank	Up to 1% of the loan amount or Rs 10,000 (whichever is higher) + GST (as applicable) *1% -2% of the loan amount + GST applicable for ASHA HL An upfront processing fee of Rs. 5,000 plus GST shall be collected at the time of application submission. The balance processing fee, as applicable, shall be collected at the time of loan disbursement. The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and is independent of the outcome of such assessment.
LIC Housing Finance	Loan amount applied Total Processing Fees IHL Scheme Upto Rs.25 Lakhs Rs. 3,000/- + GST Above Rs.25 lakh and upto Rs.50 lakh Rs. 5,000/- + GST Above Rs.50 lakh and upto Rs. 1 Cr Rs. 7,500/- + GST Above Rs.1 Crore and upto Rs. 5 Cr Rs. 15,000/- + GST Above Rs.5 Crore and upto Rs. 15 Cr Rs. 30,000/- + GST Above Rs.15 Crore Rs. 50,000/- + GST
PNB Housing Finance	Up to 1% of the loan amount
Bajaj Housing Finance	Up to 4% of the loan amount
Tata Capital	Up to 3% of the loan amount + GST
IDFC FIRST Bank	Up to 3% of the loan amount.
Aditya Birla Housing Finance	Minimal fees (only 0.25% of loan amount)

What Is a Home Loan Processing Fee?

A home loan processing fee is a charge levied by a lender for processing and reviewing a loan application. The fee varies by lender and may depend on the loan amount and the type of borrower. Some lenders charge a percentage of the loan amount, while others have fixed fees or minimum and maximum limits.

Some lenders collect an upfront fee when you submit your application and collect the remaining amount later. For instance, Kotak Mahindra Bank and Axis Bank specify an upfront processing fee of Rs. 5,000, plus applicable taxes.

Whether the processing fee is refundable or not depends on the lender's terms. Some lenders explicitly state that the fee is non-refundable. For example, HDFC Bank states that its processing fee is non-refundable, while Kotak Mahindra Bank and Axis Bank also specify non-refundable upfront fees. Check the applicable terms before paying.

All Home Loan Fees & Charges at a Glance

Charge	When you pay	Typical amount
Processing/login fee	Application and sanction	0.50%–1% (up to 2–3%) + GST
Administrative fee	At disbursal (some lenders)	e.g. 0.25% or Rs. 5,000, whichever is lower (ICICI)
Legal & technical / valuation fee	Before sanction or disbursal	A few thousand rupees (e.g. valuation up to Rs. 5,000 at Kotak)
CERSAI registration	At disbursal	Rs. 50 / Rs. 100 + GST
MOD / MODT, NOI, franking	At mortgage creation	As per state law
Stamp duty & registration (property)	At property registration	As per state law
Conversion / switch fee	When you move to a lower rate or another benchmark	e.g. Rs. 3,000 (ICICI, floating to floating), up to Rs. 10,000 (Kotak)
Prepayment / foreclosure	When you prepay or close early	Nil (floating, individuals); fixed rate, e.g. 2%
Penal charges (late EMI)	On default	e.g. 5% p.a. (ICICI) to 8% p.a. (Kotak) on the overdue amount
Cheque / NACH bounce	Per bounce	Rs. 500 (ICICI) to Rs. 750 (Kotak)
Duplicate NOC, document retrieval, statements	On request	Rs. 100–Rs. 800 per request

Home Loan Fees & Charges Explained

Processing Fee and Login Fee:

A processing fee is charged by the lender to review and process a home loan application.
The amount varies by lender and may be calculated as a percentage of the loan amount or charged as a fixed fee.
For instance, SBI charges 0.35% of the loan amount, subject to minimum and maximum limits, plus GST. LIC Housing Finance charges fixed fees based on the loan amount, starting at Rs. 3,000 plus GST for loans up to Rs. 25 lakh.

Administrative Charges:

Administrative charges may apply to certain home loans, but the amount and terms depend on the lender.
The information provided here does not specify separate administrative charges for the listed banks and housing finance companies.
Check the lender's fee schedule to confirm whether any additional administrative fee applies.

Legal and Technical (Valuation) Fees:

Legal and technical fees may be associated with checking property documents and assessing the property's value as part of the loan process.
The information provided, however, does not specify the legal or valuation fees charged by the listed lenders.
Confirm these charges with the lender before applying.

MOD / MODT, NOI and Franking Charges:

MOD (Memorandum of Deposit of Title Deeds) or MODT relates to the creation of a mortgage through the deposit of property title deeds.
The applicable stamp duty and registration requirements depend on the state and the transaction.

NOI (Notice of Intimation) is a notice filed with the relevant authority where required. Franking is a method of paying stamp duty on eligible documents.

Stamp duty and registration charges:

Stamp duty and property registration charges are related to the property purchase and vary by state and location.
These are separate from the lender's home loan processing fee. The applicable amount depends on the relevant state rules and the details of the transaction.

Conversion / Switch Fee:

A conversion or switch fee may apply when a borrower requests a change to the interest rate on an existing home loan.
The fee and eligibility conditions depend on the lender and the type of rate change requested.
The information provided does not specify the current conversion fees for the listed lenders, so check the applicable charges with your lender before requesting a change.

Penal Charges and Bounce Charges:

Lenders may impose penal charges when loan payments are overdue and bounce charges when an EMI payment fails.
The applicable amounts and conditions vary by lender.
The information provided does not specify these charges for the listed banks and housing finance companies.
Check your loan agreement and the lender's current schedule of charges for details.

Other Service Charges:

Additional service charges may apply to requests for certain documents, account services or changes to loan-related details.
These may vary by lender and service. The information provided does not specify the applicable amounts for the listed lenders, so confirm any additional charges before requesting a service.

Home Loan Prepayment & Foreclosure Charges

Foreclosure means repaying the entire outstanding home loan before the end of its tenure. Part-prepayment means paying an additional lump sum towards the outstanding loan balance without closing the loan completely.

The charges, if any, depend on the lender, loan type and applicable terms. The information provided does not specify prepayment or foreclosure charges for the listed lenders. Check your loan agreement and the lender's current fee schedule to understand the applicable conditions before making an early repayment.

Loan type	Borrower	Prepayment/foreclosure charge
Floating rate	Individual (non-business purpose)	Nil: RBI rule
Fixed rate	Individual	Lender-specific, e.g. 2% of the amount prepaid (ICICI Bank), or 1% per year of remaining tenure, capped at 3% (Kotak)
Fixed rate, prepaid from your own funds	Individual	Often nil (e.g. HDFC Bank); check your agreement
Floating or fixed	Non-individual / business purpose	May apply (e.g. 2%)

RBI's prepayment-charge rules for loans sanctioned or renewed from 1 January 2026 reinforce this: no prepayment charges on floating-rate loans to individuals for non-business purposes, and any applicable charge must be disclosed upfront in the KFS.

Before you foreclose, check:

whether your loan is floating or fixed (it's in your sanction letter)
that you collect your original property documents and the NOC
that the lender releases the CERSAI charge and updates your credit report

How Much Will You Pay Upfront? (Example)

For a Rs. 50 lakh home loan, assuming a 0.50% processing fee and Rs. 10,000 in legal and valuation fees:

Charge	Amount	GST (18%)	Total
Processing fee (0.50%)	Rs. 25,000	Rs. 4,500	Rs. 29,500
Legal + valuation fees	Rs. 10,000	Rs. 1,800	Rs. 11,800
CERSAI registration	Rs. 100	Rs. 18	Rs. 118
Lender charges total	Rs. 35,100	Rs. 6,318	Rs. 41,418 (~0.8% of the loan)
MOD / MODT, NOI, franking	As per state	–	–
Stamp duty & registration on the property	As per state	–	–

Hidden Home Loan Charges You Should Know About

Login fee: Non-refundable, even if your loan is rejected.
Admin fee: Extra charges at the time of loan disbursal.
Insurance premium: If added to your loan, you’ll pay interest on it too. Insurance is generally not mandatory for a home loan.
Rate conversion fee: Charges for switching to a lower interest rate.
Foreclosure charges: May apply to fixed-rate or hybrid loans.
Document delay penalty: Charges for late submission of documents, like the registered sale deed.
Copy charges: Fees for physical statements, duplicate NOCs, or document copies.
Repayment mode charges: Extra fees for cash EMI payments or changing your payment method.

Pro tip: Always ask for the Key Fact Statement (KFS) before signing. Check all charges carefully so there are no surprises later.

How to Reduce Home Loan Processing Fees & Charges

Compare the total cost, not just the interest rate: Review the processing fee, applicable taxes and other charges listed in each lender's Key Fact Statement (KFS).
Ask about fee reductions: Check whether the lender offers a lower processing fee based on your borrower profile or loan terms.
Check current offers: Ask lenders whether any processing fee waivers or reduced-fee offers are available for your loan.
Review digital application fees: Before applying home loan online, check whether the lender offers a different processing fee for digital applications
Check borrower-specific benefits: Ask whether any fee concessions apply to your borrower category or existing relationship with the lender.
Understand prepayment terms: If you expect to repay your loan early, compare floating- and fixed-rate loan terms and check the applicable prepayment rules and charges.
Compare conversion and balance transfer costs: If you want a lower interest rate, compare the cost of switching your existing loan's rate with the charges involved in transferring the loan to another lender.
Review optional add-ons: Check whether bundled products or services are optional and consider their costs before agreeing to them.

Compare Home Loan Fees on Paisabazaar

You can compare home loan processing fees and other charges across banks and housing finance companies to understand the total cost of borrowing. Review each lender's fees, applicable taxes and loan terms before making a decision. You can also check with the lender about the documents required for home loan and the steps involved in processing and disbursing the loan.

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FAQs

What is the processing fee for a home loan?

A home loan processing fee is charged by the lender to review and process a loan application. The amount varies by lender, loan amount and borrower category. For example, SBI charges 0.35% of the loan amount, subject to minimum and maximum limits, plus GST. HDFC Bank charges up to 0.50% for salaried customers and self-employed professionals, subject to a minimum fee, plus applicable taxes. Bajaj Housing Finance charges up to 4% of the loan amount.

Is the home loan processing fee refundable?

Some lenders explicitly state that their processing fees are non-refundable. HDFC Bank, for example, specifies that its processing fee is non-refundable. Kotak Mahindra Bank and Axis Bank also specify that their upfront fees are non-refundable. Check the lender's terms before paying.

Is GST charged on the home loan processing fee?

GST may be charged in addition to the processing fee, depending on the lender's fee structure. For example, SBI, LIC Housing Finance and Tata Capital specify that GST applies to their stated processing fees. Check the applicable charges with your lender.

Which bank has zero processing fees for home loans?

The lender information provided does not identify any bank or housing finance company offering zero processing fees. Charges vary by lender and loan type, so check the current fee schedule to determine whether a waiver applies to your loan.

Can I negotiate the home loan processing fee?

The information provided does not specify whether individual lenders allow processing fee negotiations or waivers. You can ask your lender whether a reduced fee is available and request confirmation of the final amount and applicable taxes.

When is the home loan processing fee paid?

The payment schedule varies by lender. Kotak Mahindra Bank and Axis Bank specify an upfront processing fee of Rs. 5,000 plus applicable taxes at the application stage. The remaining processing fee, where applicable, is collected according to the lender's terms.

Is the home loan processing fee tax-deductible?

The information provided does not specify the income tax treatment of home loan processing fees. Eligibility for a tax deduction depends on the applicable tax provisions and the borrower's circumstances. Check the current income tax rules or consult a tax professional.

Are there prepayment or foreclosure charges on home loans?

Prepayment and foreclosure charges depend on the loan type, purpose and applicable rules. The lender fee information provided does not specify the prepayment or foreclosure charges for the listed banks and housing finance companies. Check your loan agreement and the applicable RBI rules before making an early repayment.

What are MOD charges in a home loan?

MOD stands for Memorandum of Deposit of Title Deeds. MOD or MODT charges relate to the stamp duty and other applicable costs associated with creating a mortgage by depositing property title deeds. The amount depends on the applicable state rules and the transaction.

What are CERSAI charges on a home loan?

CERSAI stands for the Central Registry of Securitisation Asset Reconstruction and Security Interest of India. It maintains records of security interests, including mortgages. The lender information provided does not specify the CERSAI charges applicable to each listed lender. Confirm the amount with your lender.