Loan Against Property Charges - Check Mortgage Loan Fees

A loan against property or mortgage loan considers your asset (real estate) and allows you to raise funding accordingly.

However, the borrower may have to incur additional costs apart from paying the principal and interest rate in full at the time of repayment. These additional costs usually make up for the services provided by your lender, deviation from the loan’s contract, penalties, or agreement fees.

Want to know how much would your final payment be?

Check out Kotak Mahindra bank’s loan against property EMI Calculator. Click here

Kotak Mahindra bank practices the utmost transparency regarding the financial intricacies of our customers’ interests.

On this page, we list down the non-refundable LAP charges.

FEES AND CHARGES - Loan Against Property
Stage	Fee/Charge Description	Payable at	Amount in Rs.
Pre-disbursement	Processing fee (PF)	Sanction	1% plus GST and Statutory dues. (Non refundable)
Pre-disbursement	Documentation Charges	Application	INR 10000 plus GST and Statutory dues
Post-disbursement	Copy of Any Documents
	Interest Certificate/ Statement of Account/ Amortisation Schedule	Event	Accessed via self service mode on Mobile Banking/Net Banking/Whatsapp Banking: Free Physical/Soft copy request through Customer Service/Branch: Rs. 250 (plus taxes and any other applicable statutory dues)
	Charges for copy of any documents (Duplicate NOC, No dues, Copy of property documents, etc.)	Event	Rs. 500 (plus taxes and any other applicable statutory dues)
	Change in Repayment mode
	Repayment mode/ Account swap charges	Repayment mode change	Rs. 500 (plus taxes and any other applicable statutory dues)
	Conversion Fee
	Switch Fee	On conversion	Switch to lower floating rate(with/without change in Benchmark): 0.5% of the principal outstanding and undisbursed amount(if any) at the time of conversion with a cap of Rs. 10,000 (plus taxes and any other applicable statutory dues)
	Prepayment Charges
	Prepayment/Foreclosure Charges (For floating rate loans)	Prepayment/Foreclosure	NIL for Term Loans given to Individual Borrowers for non-business end use. For Micro & Small Enterprises (MSE): MSE certified borrowers if loan is foreclosed from own source of fund: NIL MSE certified borrowers loan closed from borrowed funds: 3% (plus taxes and any other applicable statutory dues) of the prepayment/foreclosure amount Others (Individual borrowers for business end use and Non-individual borrowers) : • No prepayment / foreclosure is allowed until a Lock-in Period of 6 months after EMI Commencement • Post lock– in period, part prepayment of minimum Rs. 25,000 and maximum of up to 25% of outstanding loan amount can be made without any prepayment charges every 6 months • The minimum period between any two prepayment shall be at least 6 months • For any Part Prepayment in excess of 25% of outstanding loan amount: 3% (plus taxes and any other applicable statutory dues) of the excess prepayment amount • For Full Prepayment any time after the Lock-in-Period: 3% (plus taxes and any other applicable statutory dues) of the Foreclosure Loan amount plus amounts prepaid during the last 12 months
	Penal charges
	Instrument (Cheque/ECS/Mandate) dishonour charges	Instrument dishonour	Rs. 500 (plus taxes and any other applicable statutory dues)
	Substitute Interest (Penal Interest)	Late payment	2% per month (plus taxes and any other applicable statutory dues) on unpaid EMI amount for delayed period
	Collection charges (In case of default)	Late payment	30% (plus taxes and any other applicable statutory dues) of cheque/instrument dishonour charges plus penal interest E.g. EMI amount due for 30 days (a month) - Rs. 1,00,000 Penal interest (I) - Rs. 2000 Instrument dishonour charge (II) - Rs. 500 Total (I)+(II) - Rs. 2500 Collection charge excluding taxes - Rs. 750 (30% of Rs. 2500)
	Other charges
	Levy of penal interest for non-compliance of sanction terms including but not restricted to increase in credit risk like non-submission of title documents, non-commencement of construction as per undertaking, adverse repayment behaviour, other breach of agreement terms	Event	2% incremental pricing over and above existing spread (plus taxes and any other applicable statutory dues)
	Loan cancellation: Charges applicable in the event of customer opting to cancel the loan post disbursement without encashing the Disbursement Cheque. (If encashed the same shall be treated as preclosure/foreclosure)	Event	0.10% of Loan Amount or Rs. 25,000 whichever is higher (plus taxes and any other applicable statutory dues) This will be over and above PF payable.
Charges specific to OD (Overdraft) facility
Post-disbursement	Annual Renewal Charges	Renewal	0.25% (plus taxes and any other applicable statutory dues) of the OD limit (dropped limit after reduction of annual drop) shall be collected on the due date of renewal. Not Applicable for Smart Home Loan OD product.
	Non-utilization Charges	Event	0.25% of the non-utilized OD limit or Rs. 1250 whichever is higher (plus taxes and any other applicable statutory dues). Quarterly minimum OD Limit utilization threshold: 50% E.g. OD Limit : Rs. 50,00,000 OD threshold for Utilization (50% of OD Limit) : Rs. 25,00,000 OD Limit Utilized : Rs. 10,00,000 Differential : Rs. 15,00,000 Charges : Rs. 3750 (0.25% of Rs. 15,00,000)
	Overline rate/Penal interest in case of overline accounts	Overwithdrawal	3% (plus taxes and any other applicable statutory dues) per month over and above normal OD rate. This would be charged on the amount over the above OD limit.
Notes:
• Stamp Duty on Loan Agreement, Overdraft Agreement, Guarantor Agreement, Registration Charges etc. varies from State to State. Stamping/Notarisation of RBI and other Affidavits as applicable.
• Charges for other Services would be specified as applicable when the Customer applies for those services and the same shall be payable by the borrower alone e.g. Revalidation of Sanction, Change in Property, Reschedulement of Loan, Change in EMI Date, Solvency Charges etc.
• Taxes/ other statutory levies may be charged to the Borrower if applicable as per Government/ RBI directives.

Click here to refer to the General Schedule of Features and Charges (GSFC) for your loan against property (revised w.e.f. August 1, 2021).

As you can tell, the loan against property interest rate isn’t the only cost you have to pay while taking a LAP. Many lenders would lure in borrowers with quick disbursement promises or low-interest rates. However, they later charge them heavily with other costs, or worse, they refuse to cooperate. Consequently, you would not be able to do much else but play by their rules, given your real estate would now be in their seize.

It is, thus, a better idea to choose a lender who offers standard rates of interest but is transparent and reputed for proper borrower handling. Kotak Mahindra Bank is a reputed name in the banking and lending sector with thousands of happy customers in our lending books. We aspire to help you find your financial and business goals using our LAP, which comes at nominal and transparent fees.

We recommend our customers to not base their decision solely on the LAP interest rates. Secured loans have a lower interest rate. And since you have raised collateral, you would be getting a much lower interest on the loan than unsecured loans.

Please read the other applicable LAP charges. Given that you will pledge your hard-earned property’s documents in the , and your investment is in tow, you must read all the clauses and papers carefully.

To view the usual , click here!

General Questions

1. What are pre-payment charges for a LAP loan?

Various factors determine the principal and interest of a loan against property. The age and nature of your property, your income status and source, your age, and the amount you are seeking are some of the critical factors.

For more certainty, you can use the loan against property eligibility calculator here.

2. Which overdraft facilities do we get for mortgage loans?

Yes, there can be joint applicants for a LAP loan. Immediate family members or joint owners of the land can become co-applicants for a loan against property. You can increase your chances of receiving the loan when you have a co-applicant.

FAQ's

What are the processing fees for a loan against property?

The processing fee is a one-time non-refundable fee charged for the services provided to process the loan. It is payable at the time of application, and most banks in India charge 1-2% of the total loan amount as processing fees.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

What are the documentation charges for a loan against property?

A loan applicant has to pay the documentation charges while submitting his paperwork for the loan application. At Kotak Mahindra Bank, we charge INR 10,000/- + GST + Statutory dues in documentation charges. The interest rate can be another decisive factor while choosing the right LAP loan.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

What are the charges I need to pay to foreclose my loan against property?

The 2014 RBI Circular mandates that no foreclosure charges will be levied on individual borrowers seeking floating loan interest rates. However, for individual borrowers who have loans at fixed interest rates or joint borrowers with floating rates, there will be foreclosure charges applicable if the loan is retired before its schedule.

You can refer to the table above to check out our charges.

What is an overdraft facility for a mortgage loan?

There are two types of loans against property available with Kotak Mahindra Bank: Overdraft and Term loan.

In a term loan, you get a specific amount that you will have to pay at specific time intervals and a fixed interest rate. In the overdraft facility, one gets the option to choose when and if they want to withdraw. You only pay interest on the amount you withdraw, and that too, if repaid in 24 hours, attracts 0 interest. Moreover, with an overdraft facility, one can pay off their loan partly or in full beforehand without attracting additional charges.

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Loan Against Property Fees and Charges

Loan Against Property Fees and Charges

General Questions

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FAQ's

What are the processing fees for a loan against property?

What are the documentation charges for a loan against property?

What are the charges I need to pay to foreclose my loan against property?

What is an overdraft facility for a mortgage loan?

Loan Against Property

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