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Home Loan Tips: Banks secretly impose this charge on home loans, you will not know about it..

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Now home loans have become a big help in fulfilling the dream of owning a house. Most of the people taking home loans investigate only the interest and processing fees.

They do not take any information about the various charges levied by banks before taking the loan. These hidden charges (Home Loan hidden charges) weigh heavily on the customer's pocket. In such a situation, customers need to have this information. If these charges are not understood carefully, the home loan may prove to be a loss-making deal.

Hidden charges and their rates vary from bank to bank. One bank may be charging a fee for a service, while another may be providing the same service free of cost. Therefore, before taking a home loan, one must compare the interest and processing fees as well as other charges of the banks.

Login fees

According to, the Login Fee which is also called an administrative fee or application fee. Some banks charge some money when you apply for a loan, even before your loan is approved.

This fee usually ranges from Rs 2,500 to Rs 6,500. This amount is deducted from your processing fee once your loan is approved. If the loan is not approved then the login fee is not refundable.

Prepayment charge

It is also called a foreclosure charge and preclosure charge. This charge is applicable if you repay your home loan in full before the end of the tenure. It ranges between 2% to 6% of the outstanding amount.

Conversion charges

This is also called switching charges. This applies if you change your floating-rate package to a fixed-rate package or a fixed-rate package to a floating rate. It can generally range from 0.25 percent to 3 percent of the remaining loan amount.

Recovery charges

This charge is levied when the loan borrower does not pay the EMI his account becomes default and the bank has to take any action against him. The amount of money spent in this process is recovered from the customer.

Legal fees

Be it the valuation of property or verification of various documents, banks employ legal experts to fulfill these requirements. They are paid fees for this work. That is why banks also apply legal fees on home loans.

Inspection fee

Banks appoint technical experts to assess the market value of the property for which the home loan will be taken. These experts evaluate the property on several parameters. Banks charge separately for this.

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