What is Processing Fee for Home Loan?

Hello mate! If you have taken a home loan, you must have come across a term known as the housing loan processing fee. A lot of people usually do not know its meaning and try to find the reason behind this charge. I would like to take the initiative of answering your question. Please read along to gain all the information.

What is Meant by Housing Loan Processing Charges?

The word holds the meaning within itself. Processing fee for a home loan stands for the chargers levied by a financial institution, such as a bank to process your home loan. This fee is strictly non-refundable. However, there are some differences on the way this processing fee is charged, varying from one bank to the other.

A few banks charge the processing fee at a fixed rate, while the others decide this fee based on the percentage of the loan amount you have borrowed. This percentage is usually 0.5 or 1%. 

For additional information regarding the percentage of loan that is charged as processing fee by each loan, you can refer to Sarthak’s answer. He had mentioned everything in great depth and it would definitely help you.

Hopefully, this answer of mine will guide you to understand the processing fee of home loan. 

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How To Calculate Processing Fee For Home Loan?

Home Loan Processing Fee is a one-time charge that you pay to the NBFC or bank when you take a home loan. It is charged to cover the costs incurred by the lender on the loan process. It is non-refundable and you are required to pay it separately. Different banks charge a different processing fee on their home loan schemes. I want you to know that there are some financial institutions that don’t charge any processing fee or waive it as a special offer. Several banks even have separate charges for self-employed non-professionals (SENP), self-employed professionals (SEP), and salaried persons. Read SBI home loan processing fee and HDFC home loan processing fee as well as processing fee charged by other banks. Processing Charges for Home Loan in Different Banks

Banks	Processing Fee (Minimum in %)	Processing Fee Amount (Min)
SBI Home Loan Processing Fee	0.4%	Rs.10,000
HDFC Home Loan Processing Fee	0.5%	Rs.3,000
ICICI Home Loan Processing Fee	0.5%	Rs.2,000
Axis Bank Home Loan Processing Fee	1%	Rs.10,000
LIC Home Loan Processing Fee 2021	-	Rs.10,000
IDBI Home Loan Processing Fee	0.5%	Rs.2,500
IOB Home Loan Processing Fee	0.5%	Rs.20,000
Union Bank of India Home Loan Processing Fee	0.5%	Rs.15,000
PNB Home Loan Processing Fee	1%	-
Indiabulls Home Loan Processing Fee	2%	-
Kotak Home Loan Processing Fee	0.5%	-
IIFL Home Loan Processing Fee	1.25%	-
L&T Home Loan Processing Fee	0.25%	-
Yes Bank Home Loan Processing Fee	2%	Rs.10,000
Bank of India Home Loan Processing Fee	0.25%	Rs.1,500
Bank of Baroda Home Loan Processing Fee	0.25%	Rs.8,500
UCO Bank Home Loan Processing Fee	0.5%	Rs.1,500
PNB Home Loan Processing Fee	0.35%	Rs.2,500
IDFC First Home Loan Processing Fee	-	Rs.10,000
Standard Chartered Home Loan Processing Fee	0.5%	-
HSBC Home Loan Processing Fee	1%	Rs.10,000
DBS Home Loan Processing Fee	-	Rs.10,000
Canara Bank Home Loan Processing Fee	0.5%	Rs.1,500
Central Bank of India Home Loan Processing Fee	0.5%	Rs.20,000
Karur Vysya Home Loan Processing Fee	-	Rs.2,500
Karnataka Bank Home Loan Processing Fee	1%	-
Dhanlaxmi Bank Home Loan Processing Fee	1%	Rs.10,000
Tata Capital Home Loan Processing Fee	0.5%	-
Aditya Birla Home Loan Processing Fee	0.5%	-
Federal Bank Processing Fee	0.5%	-
South Indian Bank Home Loan Processing Fee	0.5%	Rs.5,000
Jammu and Kashmir Bank Home Loan Processing Fee	0.25%	Rs.5,000
Bandhan Bank Home Loan Processing Fee	0.25%	-

Get a Housing Loan at Low-interest Rates through NoBroker. Calculate the amount of home loan that you are eligible to avail through this, [widget_homeLoan_checkEligibility_form] I hope now you know what is processing fee for home loan. 😊 Read more: What documents are required to apply for a home loan? How to reduce EMI of existing home loan? What are the best ways for repaying home loan faster? What are the best options to close home loan early?