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Applying for a home loan can take you a step closer to getting your dream home. But there are some associated costs you must know. While interest rates are among the most significant costs, the processing fee is another crucial cost.

Read on to know the home loan processing fees levied by various banks and the other fees associated with a home loan.

Home Loan Processing Fees of Banks in 2024

It is a one-time fee levied by the lender to process the application. Moreover, it varies across lenders and depends on your home loan amount. Here is an overview of the home loan processing fees of some prominent Indian banks.

Bank Name

Home Loan Processing Fee %


Axis Bank


Minimum of ₹10,000 


0.50% - 2.00%

Minimum of ₹2,999

Union Bank of India


Minimum of ₹15,000

YES Bank



Punjab National Bank



State Bank of India



Disclaimer: The above rates & charges are subject to change at the bank’s discretion.


Remember that you will pay the processing fee for home loans after approval. This is a service charge, also known as an “administrative fee”, hence GST of 18% is levied over the final amount. But in some cases, you may have to pay an upfront fee, which may be non-refundable. However, this depends entirely on the lender.

Different Types of Home Loan Processing Charges & Fees

As mentioned, there are numerous home loan charges apart from the processing fee. Knowing these associated costs is crucial to assess your finances properly and be clear about what you need to pay. Here’s a look into some common charges:

Home Loan Related Fees

1. Login Fee

The login fee is the one-time non-refundable amount charged during the time of the application. Upon approval, this amount is deducted from the processing charges levied, and you will only pay the remainder.

2. Collection / Recovery Charge

This is levied in case of default on repayment, when the lender needs to take legal action. The charge is usually based on actuals incurred plus some penalty percentage over it.

3. Late Payment Fee

It is extremely important to pay your EMIs on time, and failing to do so can result in late payment charges. Most banks charge somewhere between 2% to 3% of the outstanding loan amount.

4. Prepayment Charge

You need to pay a prepayment charge if you decide to pay off your home loan in full before the end of the tenure. 

5. Partial Prepayment Charge

A partial prepayment charge is applicable when you prepay the balance amount before the due date.\

6. Other Charges

Apart from the above listed, there can be additional charges like Insurance Premiums (in case you buy insurance to secure the loan and/or the property), Switching Fees (in case you choose to convert your home loan type in between the active tenure), Repayment Mode Change Fee.

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Home Loan Fees and Charges for Documents

Apart from the processing charges, you can expect the following documentation-related fees and charges.

1. Stamping Charge

This fee is levied during stamping of legal documents. 

2. Income Tax Certificate Charge, Interest Certificate Charge, CIBIL report, NOC, No Dues Certificate, Duplicate copies

Most banks offer these facilities for free. But you must check if your lender levies any charges and ask for the break-up.

3. Document Retrieval charges

When you pay off your loan, you will require all the original papers and titles returned to you. This is when you can be levied with ‘Document Retrieval’ charges.

4. Agreement Copy Fee, Duplicate Statements Fee, Amortisation Schedule Issuance Fee 

Documentation-related clerical activities may attract certain charges that you may have to pay for availing of the service. Many lenders waive these charges for select customers and types of loans. You can confirm the same with the lender.

Legal/Government Charges for Home Loan

1. Legal Fees

A home loan is a contract between you and the bank with several important terms and conditions for which you need a home loan agreement. The amount incurred in creating these legal documents is borne by the applicant. Usually, these charges are based on actuals.

2. Verification Fee

Before sanctioning your loan, the financial institution will conduct a detailed inspection of the property you want to buy with the loan. This is because banks work on minimal risk exposure and need to ensure all related attributes are in order. You may have to bear the costs the lender bears for carrying out the verification and valuation. 

3. Other Legal Charges

This includes charges required for creating a Memorandum of Deposit of Title Deed (MoD). The charges vary as per the state where the property is located. 

Also, the lender will levy a CERSAI Charge, which prevents abuse of the loan facility using a single property. This is a governmental requirement and includes charges for the drafting and submission of the loan.

When applying for a home loan, ensure that you read the terms and conditions thoroughly to ensure you are not blindsided after the fact. You should also compare the costs to choose the best option.

For affordable and convenient access to home loans from top lenders, visit Bajaj Markets. With an entirely online application, you can apply whenever you want and avail a truly favourable deal from leading lenders. 

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FAQs on Home Loan Processing Fees

Is home loan processing fee refundable?

The home loan processing fee is a non-refundable charge. However, there are some lenders who levy zero processing fees, and you can check this while applying. 

When do I have to pay the processing fee on home loans?

Most lenders charge processing fees for home loans after approving your application. However, some lenders may ask for an upfront fee when you apply for the loan. It generally gets adjusted from the total processing fee payable. You can confirm the same with the lender. 

What are the GST charges on the processing fee?

Since processing charges of home loans are a service charge, they are subject to 18% GST.

Will I get a refund on my processing fees if my home loan application is rejected?

This depends on the lender’s policies, and you can confirm the same beforehand. Some lenders do not return the processing fee, while most may offer partial refunds after deducting their incurred expenses.

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