Home loans are usually accompanied by the following costs:
Processing Charge: It’s a fee payable to the on applying for a loan.
Pre-payment Penalties: If the Housing loan is under Variable/Floating Rate loan and the loan is prepaid through any source, no prepayment charges shall apply If the Housing loan is under fixed rate, the prepayment charges shall apply except in the cases in which the customer is paying out of his ‘Own Sources’. The expression ‘own sources’ indicates that the proceeds of the prepayment should be from ‘any source other than from a bank/HFC/NBFC and/ or a financial institution’
All other Loans would continue to attract pre-payment penalty upon pre-closure, as per the terms and conditions of the loan agreement which is duly signed and executed by the customer.
- Commitment Fees: Doesn’t take any commitment fees from consumers, while some Institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
- Miscellaneous Costs: Levies a minimal charge of ` 220 only for Standard documentation charges.