The acquisition of a home is a milestone in every individual’s life. To purchase a home, many times an individual uses financial assistance from a lender, this particular type of loan is known as a Home loan.
As a part of the Home Loan process, Financial institutions or banks carry out tasks like document verification, pre-sanction inspection, legal operations, etc. for which they charge a certain fee. This fee is commonly known as Home Loan processing fees.
What is Home Loan Processing Fee?
The Home Loan processing fee, also known as the application fee, is one of the charges levied by the financial institutions as a part of the loan processing. While many of the institutions charge this one time, some of them charge this processing fee in 2 parts, one at the time of login & balance at the time of disbursement. It is important that the applicant is aware of the Home Loan processing charges levied by their chosen lender to make an informed decision.
How much is the Housing Loan Processing Fee?
T The Housing Loan processing fee is a percentage of the total loan amount. Those who wish to opt for a Home Loan must be well-versed with the payable amount to the lending company.
While the amount differs between different financial institutions, the PNB Housing Home Loan processing fee* is up to 1% for Home Loan. Certain lenders also offer zero processing fee also. Few have special offers for Salaried customers. You can check with your lender on current processing fees offers.
Must Read: What is The Good CIBIL Score for Home Loan?
List of Other Charges Applicable in a Home Loan
When a financial institution grants a home loan, they may take several other charges which are not included in processing charges for a home loan. These charges are often known by different terminologies that vary with each financial institution.
When applying for a Home Loan, it is important for the applicant to be aware of the following fee and charges:
Insurance Against Property
It has been advised to take insurance against the purchased property it safeguards over the liability under any unfortunate circumstance. Lenders generally take these charges with EMI.
Delayed Payment
When a loan borrower misses their monthly EMI, they are bound to pay penalty charges. These charges can go up 2% for some lenders. Recurring delayed payments may reflect poorly on the applicant’s CIBIL score, which may create a hurdle for future financial transactions.
Prepayment Charges
If the borrower decides to close the loan before its maturity, the lender may levy a prepayment penalty. These charges are also called pre-closure or foreclosure charges.
Must Read: Tips to Apply Home Loan After 45
Conclusion
PNB Housing offers Home Loans at lowest interest rates starting from 8.75%* per annum for salaried and 8.80%* for self-employed applicants. The offered rate of interest on Home loan will also depend on the applicant’s CIBIL score and other factors such as loan amount, existing debts, tenure, etc. The tenure for this loan depends upon the eligibility and loan amount.
With PNB Housing, you get to enjoy a low Home Loan processing fee along with the support of a dedicated relationship manager, numerous repayment options and customised eligibility programs.
Note:- The aforesaid fees/charges & rates are subject to change at the Company’s discretion.
