Home Loan Charges: If you too are planning to take a home loan, then you are at the right place. Actually today we are going to tell you some important things related to home loan in this news. Because of which you can avoid hidden charges on home loan… Let’s know in detail in the news below.
Everyone dreams of buying a house. Everyone wants to have his own house. On the other hand, many times people also take home loan for their own house when they do not have money. Through home loan people can fulfill their dream of buying a house.
However, apart from the interest rate, many other expenses should be taken care of while taking a home loan. Even if the home loan interest rate is low, but if you do not pay attention to the hidden charges, then the expenses can increase. In such a situation, let us know which expenses should be kept in mind while taking a home loan.
Login Fee-
It is often referred to as administrative fee or application fee. Some banks charge these fees when you apply for the loan even before your loan is approved. This cost usually falls between Rs 2,500 to Rs 6,500. This amount is deducted from your processing charge when your loan is approved. The login fee is non-refundable if the loan is not approved.
Prepayment Charge-
It is also known as Preclosure Charge and Foreclosure Charge. This charge is payable if you prepay your home loan in full before the end of the tenure. It ranges from 2 per cent to 6 per cent of the outstanding amount.
Conversion Charges-
This is applicable when you convert a Fixed Rate package to a Floating Rate package or a Floating Rate package to a Fixed Rate package. It generally ranges from 0.25 to 3 percent of the principal amount of the loan.
Recoveries Charges-
When the borrower fails to pay the EMI, his account defaults and the bank is forced to take legal action against him and only then this charge is taken into account. In this process the customer is charged for the money used.
Legal Fee-
Banks employ legal professionals to handle these demands, be it valuation of immovable property or document verification process. In return, they get paid for their hard work. Because of this, banks also charge legal fees for home loans.
