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Processing Fees & Charges for Home Loans

When you are applying for a home loan, the lending bank or organisation charges a certain amount towards the services they provide you. This amount is called as the home loan processing fee. The home loan processing charges is a percentage of the total home loan amount that you are applying for. The home loan processing charges are non-refundable, i.e., even if the application is rejected, the amount will not be returned to you.

Applicants must also remember that home loan processing fees is not the only amount that you have to pay. There are other charges too. These charges are in addition to the home loan interest rates. That’s why it is advisable to learn about these charges beforehand, so that you understand the costs involved before applying for a home loan.

Fee/Charge Description	Amount in Rs.
Loan Processing Fees	Upto 2% of loan amount (plus taxes and any other applicable statutory dues) Note: Upfront Processing Fee of ₹ 5,000 (plus taxes and any other applicable statutory dues) shall be collected at the time of login which is non-refundable. (Non-refundable fee will be adjusted in overall Processing Fee before disbursement)
Interest Certificate/ Statement of Account/ Amortisation Schedule	Accessed via self-service mode on Mobile Banking/Net Banking/ Whatsapp Banking: NIL Charges Physical copy requested through Customer Service/Branch: ₹ 250 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Duplicate No Objection Certificate)	₹ 100 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Copy of property documents, etc.)	₹ 500 (plus taxes and any other applicable statutory dues)
Duplicate Issuance of List Of Documents	₹ 500 (plus taxes and any other applicable statutory dues)
Hard copy of any other documents /letter (e.g. Subsidy Confirmation Letter, Credit Opinion Letter, Interest paid confirmation letter, etc.)	₹ 500 (plus taxes and any other applicable statutory dues)
Repayment mode/ Account swap charges	₹ 500 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Floating)	Switch to lower floating rate(with/without change in Benchmark) for Housing/ Extension/Improvement: 0.5% of the principal outstanding and undisbursed amount (if any) at the time of conversion with a cap of ₹ 10,000 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Fixed)*	₹ 2500 (plus taxes and any other applicable statutory dues)
Switch Fee (Fixed to Floating)*	0.5% per annum of the each residual tenure with a maximum cap of 3%
Reschedulment of Loan Term	₹ 500 (plus taxes and any other applicable statutory dues)
Part Payment Charges	For Floating Rate Loan: Individual Customers with Personal End Use and Micro and Small Enterprises: NIL Others (Individual borrowers for Business End Use, Non-individual Borrowers, Companies, etc.): • Post lock-in period of first 6 Months, part prepayment of minimum ₹ 25,000 and maximum of up to 25% of outstanding loan amount can be made without any part payment charges every 6 months • The minimum period between any two part payment shall be at least 6 months For Fixed Rate Loan: Individual Customers with Personal End Use: 2% Micro and Small Enterprises: • Part Payment of minimum ₹ 25,000 and maximum of up to 25% of outstanding loan amount can be made with 2% part payment charges once in every 6 months (NIL Part Payment Charges if Loan Amount at the time of booking the Loan is Less Than or Equal to 50 Lacs) • The minimum period between any two part payment shall be at least 6 months Others (Individual borrowers for Business End Use, Non-individual Borrowers, Companies, etc.): • Post lock-in period of first 6 Months, part prepayment of minimum ₹ 25,000 and maximum of up to 25% of outstanding loan amount can be made with 2% part payment charges every 6 months • The minimum period between any two part payment shall be at least 6 months Note: The borrower shall be required to submit the Bank any suitable proof of funds being from own sources

	TYPE	Source of Funds	Rate	End Use	FC Applicable	FC Charges
Foreclosure Charges	Individual	Own Fund /Balance Transfer	Floating	Personal	No	NIL
	Individual	Own Fund /Balance Transfer	Fixed	Business/ Personal	Yes	1% of each year of residual period to original maturity at the time of prepayment of the loan shall be levied on the pre-payment amount (maximum capping of 3%)
	MSE	Own Fund /Balance Transfer	Floating	Business/ Personal	No	NIL
	MSE (<= 50 Lacs)	Own Fund /Balance Transfer	Fixed	Business/ Personal	No	NIL
	MSE (> 50 Lacs)	Own Fund /Balance Transfer	Fixed	Business/ Personal	Yes	2%
	Medium	Own Fund	Floating	Personal	No	NIL
	Medium	Balance Transfer	Floating	Personal	Yes	2%
	Medium	Own Fund /Balance Transfer	Floating	Business	Yes	2%
	Medium	Own Fund /Balance Transfer	Fixed	Business/ Personal	Yes	2%
	Others (Individual borrowers for business end use, Non-individual borrowers, Companies, etc.): • No Foreclosure is allowed until a Lock-in Period of first 6 months after EMI Commencement • For Foreclosure any time after the Lock-in-Period: 2% (plus taxes and any other applicable statutory dues) of the Foreclosure Loan amount plus amounts prepaid during the last 12 months Note: 1. For Term Loans, current Outstanding to be considered for Foreclosure Charges 2. For Dropline Overdraft, current Outstanding Limit to be considered for Foreclosure Charges
Instrument (Cheque/ECS/Mandate) dishonour charges	₹ 750/- per instance
Delay/default in payment of principal or interest/ outstanding balance	8% per annum on overdue amount
Non-payment of dues/ charges/ fees payable under loan/facility Agreement	8% per annum on overdue amount
Levy of penal charge for non-compliance of sanction terms including but not restricted to non-submission of title documents, non-com- mencement of construction as per undertaking, adverse repayment behaviour, other breach of agreement terms	₹ 5.50 per day per lac or proportionately shall become due & payable on underlying exposure (from the day of breach)
Delay or non-creation/perfection of facility or security/guarantee, etc. documentation in favor of the Bank	Penal charges at ₹ 5.50 per day per lac or proportionately for any delay beyond stipulated days as per Sanction letter /Facility Agreement upto 180 days from the original due date (“ODD”) Beyond 180 days, penal charges at ₹ 11 per day per lac. Note: 1. The said penal charges shall be calculated on sum of limits of revolving lines and outstanding of non-revolving lines of both fund and non-fund based limits to which the security extends 2. The term non-creation of security shall mean failure of the Borrower/Security Provider to create security in such form and manner as per the agreed terms mentioned in Sanction letter /Facility letters or Facility /Loan Agreements or any other document/instrument to secure the loan/financial facility availed from the Bank.

Legal charges	As Incidental/ At Actuals
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 pre closure/foreclosure)	0.10% of Loan Amount or ₹ 25,000 whichever is higher. This will be over and above PF payable.
Annual Renewal Charges	0.25% of the OD limit (dropped limit after reduction of annual drop) shall be collected on the due date of renewal Note: Not Applicable for Smart Home Loan OD product.
Non-utilization Charges	For Individual Customers with Home Loan Overdraft Facility: If average utilization of facility limits for a quarter is below 25% of sanctioned limits, 0.4% p.a. on under-utilized limit or proportionately shall become due & payable on underlying exposure (from the day of breach) For Non-Individual Customers with Home Loan Overdraft Facility: If average utilization of facility limits for a quarter is below 60% of sanctioned limits, commitment charges of ₹ 5.50 per day per lac or proportionately on unutilized limits
Penal charges in case of overline accounts or where the amount drawn by the Borrower is beyond the maximum Overdraft Limit	8% per annum on overdue amount
Note: • Stamp Duty on Home Loan Agreement, Overdraft Agreement, Guarantor Agreement, Registration Charges etc. varies from State to State. Stamping/Notarisation of RBI and other Affidavits are 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. • *The borrower can opt for switching multiple times during the loan tenure

Click here to refer to the General Schedule of Features and Charges (GSFC) for your Home Loan (revised w.e.f. April 11^th 2025).

Type of Other Home Loan Fees & Charges

Home loan processing fee is a charge that the applicant pays during the home loan application. However, there is not only one type of home loan but more than one, and each comes with different home loan processing fees and other charges. Let's take a look at these home loans and the charges they come with.

Home Renovation Loan

Home renovation loan is used to specifically upgrade your home, be it redecorating or repairing. It can be used for both. The home loan processing fee that the bank charges for this type of loan ranges from 0.25 % to 2.00 %. No prepayment charges are levied in this type of home loan.

Home Loan Balance Transfer

Home loan balance transfer facility is used when borrowers are paying a high interest rate on their existing home loan and wish to switch to another bank offering lower interest rate and a better home loan deal. The home loan processing charges in this type of home loan can go up to 6 %. Foreclosure charges for floating rates are nil, but for fixed-rate one has to pay up to 4% of the principal outstanding.

Home Construction Loan

A home construction loan provides the borrowers with funds to build a house. The home loan processing fees for this type of home loan can go up to 2 %, and the borrower doesn’t have to pay any prepayment on the floating interest rate, but for the fixed interest rate, it depends on the lender.

Bridge Loan

The processing fees generally start at 0.35 % and goes up to 3 %.

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Disclaimer (Things you should know):

For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

* Rs. 5,000 Flat processing fee applicable for women applicants.

Frequently Asked Questions

What is the loan processing fee?

Home loan processing fees are non-refundable charges that you have to pay at the time of your home loan application.

These are the charges towards the services provided by the lender. Each financial institution has a different processing fee for home loan. Kotak Mahindra Bank charges 0.5 % processing fee for salaried and 1 % for self-employed applicants. This is among the lowest home loan processing fee in India.

In the absence of salary slips, especially for non-salaried individuals, applicants may submit bank statements and complete ITR details as required by the lending bank. So, although salary slips improve your chances to get a home loan, it’s not mandatory

Is processing fee on home loan refundable?

No, the home loan processing charges are non-refundable in nature. It means, that if the bank rejects a loan application, the amount will not be refunded. That being said Kotak Mahindra Bank’s home loan processing fee is among the lowest. For a salaried applicant, it is 0.5 %, while for a self-employed applicant it is 1 %.

How is processing fee calculated?

The processing fee for home loan is a percentage charged on the loan amount that you have applied for. You have to pay it during the time of the application. These home loan processing fees are non-refundable, i.e. the bank will not refund the amount, whether the loan application is approved or not.

Is there an option for zero processing fee home loan?

No, the applicant has to pay a processing fee at the time of the home loan application. It is a percentage of the principal loan that you have applied for and is non-refundable. However, with Kotak Mahindra Bank you have to pay only a minimal home loan processing fee, i.e., 0.5 % for salaried and 1 % for self-employed applicants.

What is the processing fee for Kotak Mahindra Bank’s home loans?

To process your home loan application, the bank charges a non-refundable processing fee. Every financial institution charges its own home loan processing fee while applying for a loan or for a home loan balance transfer. Kotak Mahindra Bank offers one of the lowest home loan processing fees; 0.5 % for salaried and 1 % for self-employed applicants.

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Processing Fees & Charges for Home Loans

Type of Other Home Loan Fees & Charges

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