When applying for a home loan, it is important to know about the hidden charges and the processing fee charges in these charges. The processing fee covers the marketing sales and administrative expenses of the bank ranging from 00.25 per cent to 00.50 per cent of the loan amount plus GST charges.
Generally, the minimum processing fee for home loans smaller than Rs 50 lakh is Rs 10,000 and maximum Rs 40,000. If a home loan is taken on builder-tie up projects that do not require a customer title investigation report and valuation report, the processing fee comes down to 0.40 per cent, subject to a maximum of Rs 10,000 .
In such cases the charges are less because in a builder tie up project, the feasibility, title and valuation of the project is already thoroughly checked. State Bank of India is also the largest home loan lender in our country. State Bank of India has given many facilities to its customers from time to time, now SBI has launched Monsoon Offer. Under this offer, the bank has announced a complete waiver of processing fees for home loans.
State Bank of India has said that customers can take home loan from SBI at zero processing fee on new home buyers and customers can take advantage of this offer till 31 August 2021.