Top banks’ home loan processing fees: Check which bank is charging lowest fee

For a home loan, there are various fees that apply to the loan. These fees differ between lenders such as banks, housing finance firms, and non-banking financing companies, with some levying fees separately and others that club fees. While some fees are tied as a fixed percentage of the house loan balance, others are not. Remember that not every borrower has to pay the same processing fee when availing a home loan.Processing fee
Through the processing charge, a lender is able to recover all of its credit underwriting-related expenses. Some lenders impose a processing cost that is flat, while others often charge a variable processing fee that might reach 2% of the loan amount.

Here are tops banks and their processing fees charged for a home loan. (It may differ if the bank hikes or offers festive discount; Source: Compiled by ETIG; Interest rates as on September 7, 2023, Home loan rates are repo linked lending rates or RLLR) HDFC Bank

HDFC Bank offers a home loan interest rate between 8.50% to 9.40% for salaried employees. The processing fee applicable is up to 0.50% of the loan amount or Rs 3,000 whichever is higher, plus applicable taxes.

ICICI Bank
ICICI Bank offers a home loan interest rate between 9.25% to 9.90% for salaried employees. The processing fee applicable between 0.50% to 2% subject to minimum of Rs.1,500.Punjab National Bank
PNB offers a home loan interest rate between 8.50% to 10.10% for salaried employees. The bank charges processing fee of 0.35 % (min. Rs.2500/- max. Rs.15000/-) plus documentation charges Rs.1,350.

SBI Term Loan
SBI offers a home loan interest rate between 8.70% to 9.65% for salaried employees. The bank offers up to 0.40% + GST (min Rs.10,000 and max Rs.30,000 + GST). (Exception Buildertie-up Projects)

Axis Bank
Axis Bank offers a home loan interest rate between 10.50% to 9.90% for salaried employees. The processing fee of the bank is up to 1% of the loan amount subject to minimum of Rs. 10,000.

Bank of Baroda
Bank of Baroda offers a home loan interest rate between 8.60% to 10.50% for salaried employees. The bank charges a processing fee between 0.25% to 0.50% of the loan. (Min. Rs.8500 – Max. Rs.25000).

Canara Bank
Canara Bank offers a home loan interest rate between 8.85% to 11.20% for salaried employees. The bank charges a processing fee of 0.50% (Min Rs.1500 and Max. Rs.10,000).

Indusind Bank
Indusind Bank offers a home loan interest rate between 8.50% to 10.55% for salaried employees. The bank charges a processing fee of 1% of loan or Rs 10,000+GST whichever is higher.