Home Loan Fees & Charges
Many people take a home loan to fulfil their dream of owning a house. With Clix Capital, you can get a home loan of up to ₹ 2 crores and repay it in 25 years. You may use our home loan EMI calculator to get an estimate of your EMIs. Do note that your EMIs are affected by factors like your income, loan amount, interest rate, credit score, and others. However, in addition to the interest rate and loan amount, you also need to pay a number of fees and charges before, during, and after the home loan term. We’ve listed down some of these fees and charges that you need to stay prepared for.
Understanding the Types of Fees and Charges
When you apply for a home loan, you need to pay a variety of fees and charges. Understanding them will help you avoid from an unpleasant surprise afterward. Most of them are generally placed into the following three categories:
1. Loan Related Charges
Processing Fee: A small percentage of the loan amount you applied for, this fee includes a variety of costs related to your loan processing, such as loan application scanning, examination of your financial statements, paperwork verification, property inspection, etc. This fee also covers the costs of printing and delivering your loan papers.
Application Fee: This is a small amount that you have to pay at the time of applying for a home loan. It remains non-refundable if your loan application gets rejected, but if it gets approved, it is deducted from your loan processing fee. (This fee is not particularly charged by all lenders, due diligence while deciding on your lender of choice can help avoid this fee.)
Late Payment Penalty: If you fail to pay your home loan EMIs on time, if you miss a payment or delay it beyond the last date, you will end up paying late payment penalties. It is a small percentage of the amount you defaulted on.
Prepayment Charges: If you got some amount and you want to use it to pay your loan amount before your loan term’s end, either partially or completely, then you will need to pay these prepayment charges. This amount is often a small part of your remaining loan amount.
Recovery Charges: This fee is applicable if you do not pay your EMIs and the lender has no other option but to take legal action against you. In that case, you have to pay the loan amount, the interest rate, along with these recovery charges.
Secure Fee: It is a small amount that you have to pay for the maintenance of online gateways and protection against hackers.
Swap Charges: Before you receive your loan amount, you have to provide ECS mandate or post-dated cheques. If you decide to switch your lender, you have to pay swap charges and provide new ECS and PDCs.
2. Document Related Charges
Stamp Duty: You have to pay this fee for preparing legal documents on stamp paper.
Credit Report Fee: It’s crucial to check your credit score and go through your credit report before applying for a home loan. You need to pay this fee to request your credit report from the credit bureau.
Income Tax Certificate Charge: You may need to show your income tax certificate to your lender. You need to pay this charge to procure it.
Fee for Amortisation Schedule Issuance: You have to pay this fee in return for an amortisation schedule for your loan term.
Document Retrieval Charges: Once you repay your loan successfully, you would want your property documents that you put as collateral with the lender. You have to pay this fee to get these documents.
NOC or NDC Charge: These charges are applicable at the time of closing the account, for which you need a NOC (No Objection Certificate) and NDC (No Dues Certificate).
Besides these, you have to pay small fees and charges for procuring other papers as well, including your agreement copy, title document, duplicate statement, etc.
3. Legal Charges
There are certain legal expenses that you have to make for your home loan. These include:
Home Inspection Charges: A home inspection is required to determine the property’s value and approve the loan amount. You have to pay these charges to meet the related expenses.
MoD Charge: You have to give your property’s first charge to the lender until you repay your loan amount in full. You have to pay the MoD charge to confirm the deposit of the title deed with the lender.
CERSAI Charge: The collateral needs to be registered with CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India), for which you have to pay this CERSAI charge.
These are some of the charges you may have to incur during the term of your Home Loan. It’s important to be aware of these terms and charges so that you can stay prepared for the expenses ahead.
Apply for Clix Capital’s home loan here for a easy and hassle-free process. You can speak to our customer representative to get any of your queries answered. Call us on 124-4740870
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