What are the fees and charges payable and when are they payable?
Ans : Apart from the rate of interest bank also do charge some fees which are of usually two types. Once when you are applying for the loan and once when you are preclosing the loan. The fees when charged at the time of processing called as Processing Fees vary from 1-2% of the loan amount. The second charge is the prepayment penalty paid at the time of preclosure. This too varies from 1 –5 %.
Processing fees and administrative fees, both payable upfront; are the charges payable to the Housing finance companies for sanctioning of Housing loans. The processing fee (fees at the time of application) could range between 0.8% to of the loan amount applied for, and is generally levied to cover the costs incidental to the application. Once the loan is sanctioned, an administrative fee of 1% of the loan amount sanctioned will have to be paid.
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