1.Processing fee: It is exactly what the name suggests. When you apply for a loan the lender will charge you with a fee for processing your loan which is non-refundable. The amount depends on various particulars of your loan.
2.Prepayment charges: You might believe that prepayment of the loan is your own choice but after a certain amount the lender will levy certain prepayment charges. You may partially prepay up to 25 percent of your loan in a given year, but for anything above that you will have to pay a prepayment charge of up to 2%.
3.Foreclosure charges: These charges are generally applicable when the home loan interest rate is fixed and has been pre-closed with sources that are not the applicants’. In such cases, a percentage of the outstanding principal amount plus taxes are levied as foreclosure charges.
- Delay in Payment Charges:A 2% charge over the prevailing interest amount is levied for each month the payment is outstanding for delays in payment.
- Stamp Charges: When you are availing a loan to purchase a house the stamp duty charges are included in the loan amount, provided that the loan amount exceeds 10 lakhs. This amount is usually dependent on the rate decided by the state.
- PDC charges
- Loan cancellation
- Dishonoured cheque or Rejection of ECS
- Post-dated cheque swapping charges
- Account maintenance charges
- CERSAI or Central Registry of Securitization Asset Reconstruction and Security Interest of India. This varies according to the quantum of the loan.
- Collection agency & legal charges are based on actuals
So, don’t make the same mistake as Rajat. When you calculate how much will you have to pay on your home loan, always take the above charges into consideration.