When availing of a home loan, you need to pay a processing fee at the time of applying for the loan. This fee is calculated as a percentage of the home loan amount, up to a maximum limit. The home loan processing fee is non-refundable.
Besides the processing fee, there are different charges associated with a home loan. These charges are in addition to the home loan interest rates. You should know these home loan charges to understand what the loan exactly costs you besides checking your home loan eligibility.
Here is a table showing the processing fee and other charges associated with Kotak Mahindra Bank’s Home Loan
|Stage||Fee/Charge Description||Payable at||Amount in Rs.|
|Pre-disbursement||Processing fee (PF)||Application||Salaried: 0.5% (plus taxes and any other applicable statutory dues) of loan amount;|
|Self-Employed, HL top-up/Commercial Purchase: 1.0% (plus taxes and any other applicable statutory dues) of loan amount;|
|Upfront PF of Rs. 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 PF before disbursement)|
|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, Copy of property documents, etc.)||Event||Rs. 500 (plus taxes and any other applicable statutory dues)|
|Any Other documents /letter (e.g. Subsidy Confirmation Letter, Credit Opinion Letter, Interest paid confirmation letter, 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)|
|Switch Fee||On conversion||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 Rs. 10,000 (plus taxes and any other applicable statutory dues)|
|Prepayment/Foreclosure Charges||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|
|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)|
|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)|
|Legal charges||Event||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.||Event||0.10% of Loan Amount or Rs. 25,000 whichever is higher (plus taxes and any other applicable statutory dues)|
|(If encashed the same shall be treated as pre closure/foreclosure)||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.|
|• 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.|
The processing fee is a fee payable to the bank for processing your home loan application. Every financial institution charges this non-refundable fee when you apply for a loan or opt for a home loan balance transfer. For Kotak Mahindra Bank, the processing fee is 0.5% for salaried and 1% for non-salaried borrowers.
Foreclosure of a home loan means repaying the loan in full before the chosen repayment term is completed. If you opt for such a foreclosure, a charge would have to be paid for the same which depends on the bank from where you are availing the loan.
Prepayment means paying a part of the outstanding home loan in advance. For example, if you pay Rs.50,000 to reduce your home loan burden, such a payment would be called a prepayment.
I had a great experience. I want to appreciate the Home Loan RM & branch for the customer centricity & follow ups to keep the things moving.
Reviewed on 04/11/2022
It was good experience. I preferred Kotak bank over other banks due to lower rate of interest and my existing relationship with Kotak Bank.
Reviewed on 04/11/2022
Process of getting Kotak Home Loan was smooth. Would recommend one to choose Kotak Home Loans. Also, RM, Branch team were of great support.
Reviewed on 04/11/2022
Extremely satisfied with the services provided. I really appreciate Kotak Bank & the team for their efforts in helping me buy my first home.
Reviewed on 04/11/2022
The processing fee on the home loan is payable at the time of application.
No, the processing fee on home loan is not refundable.
Kotak Mahindra Bank charges its customers the following fees/charges:
A GST of 18% is applicable on loan processing fee.. Kotak Mahindra Bank charges a processing fee of 0.5% in case of salaried professionals, while for non-salaried individuals it is 1%. Processing fee generally is a non-refundable charge to be paid by the borrower at the time of loan application.
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.