What are the charges other than interest that are levied by home loan lenders ?
Almost all lenders charge certain administrative or processing fees apart from interest for providing a home loan in India . You must compare all these charges as well before signing on to a home loan contract. • Legal fees – payable to the lender or to the legal consultants of the lender • Technical or Valuation charges – payable to the lender or to his technical consultant. • Stamp duty on creation of mortgage – some banks charge this fee whilst other banks normally just have a clause that requires this to be paid in the event the state government actually charges this amount. The escape route for non-payment of this duty are progressively being eliminated and the fact that the consumer carries the liability to pay this duty in the future if demanded by the state government along with interest and penalties in the future. So, this should not really be used by a consumer to eliminate a lender just because he is paying this stamp duty to the government. • Prepayment Charges – This is t
