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Looking For a Home Loan? How Much Would It Cost?

Team BankBazaar

A Home Loan comes handy for people who cannot afford to purchase or construct a home with their current savings or regular income. When you take a loan, you repay the principal along with interest over the specified loan tenure. Besides the interest rate, loans have other charges which you should know about. When you apply for a home loan, you must evaluate the total cost of borrowing. A low interest rate alone helps, but it should not be the sole criteria for selecting a loan. Charges associated with the home loan depend on factors such as the lender’s norm, or the state where the property is located as franking charge would be levied accordingly. If you also take insurance products (such as home loan insurance) which come bundled with the loan, your loan costs may increase to the extent of the Insurance costs.

In this article, we take a look at fees you need to pay when you take for a home loan and how much it would cost in the present scenario.

How much home loan would cost you?
Detail of Charges Cost (Approx.) Amount (on home loan of Rs. 30 lakh)
Home loan processing fees 0.24% to 1% of loan, minimum Rs 1500 Rs. 7,200 to Rs 30,000
Legal Opinion fee Rs. 3,000 Rs. 3,000
Mortgage Deed Fee (MOD) 0.5% of loan amount Rs. 15,000
Franking fee on home loan agreement 0.1% to 0.3% of loan value Rs. 3,000 to Rs. 9,000
Home loan cost (Approx.)   Rs. 28,200 to Rs 57,000
     
Interest on home loan (% Pa for floating rate) 8.35% to 9.1%  
Other charges associated with home loan    
Cheque dishonour charges Rs. 500  
Home loan insurance cost Depends on loan amount, tenure etc.  
Home insurance cost Depends on cover size  
Delay payment charges 2% per month  
Annual account maintenance charges  Rs. 250  
Conversion charges for home loan (Floating to Floating) 0.5% of the principal outstanding  
Property valuation fee As per actual  
Charges may vary depending on factors such as type of loan, state in which property is located, bank’s norm etc. Above mentioned cost of home loan is indicative and collected from various sources. The author is not responsible for any discrepancy in data.

Take a look at home loan interest rates offered by different banks.

Institution Loan <= Rs 30 Lac Loan 30 Lac<= Rs 75 Lac Loan >=Rs 75 Lac MCLR** WEF
Banks
Floating Rates:
Allahabad Bank 8.35 8.35 8.35- 8.85 8.3 01-May-18
Andhra Bank 8.6-8.65 8.6-8.65 8.6-8.75 8.55 15-Jun-18
Axis Bank^ 8.5-8.55 8.5- 8.7 8.65-8.75 8.5 18-Jun-18
Bank of Baroda**^ 8.45-9.45 8.45-9.45 8.45-9.45 8.45 06-Jun-18
Bank of India 8.5 8.5-8.6 8.5-8.6 8.5 10-Jun-18
Bank of Maharashtra 8.75 8.75 8.75-8.85 8.75 07-Jun-18
Canara Bank 8.55- 8.6 8.55- 8.7 8.65- 8.75 8.5 07-Jun-18
Central Bank 8.45 8.45 8.45 8.45 01-Jun-18
Corporation Bank 8.5-8.95 8.5-8.95 8.5-9.2 8.4 15-Jun-18
Dena Bank 8.4-8.45 8.4-8.45 8.4-8.55 8.4 01-Jun-18
Federal Bank^ 9.05-9.15 9.05-9.15 9.05-9.15 9.05 16-Jun-18
HDFC Bank 8.5-8.6 8.5-8.7 8.6-8.7 04-Jun-18
ICICI Bank 8.55-8.75 8.55-8.9 8.85- 9.05 8.4 NA
Indian Bank 8.5 8.5 8.5-8.6 8.5 11-Jun-18
IOB 8.5 8.5-8.6 8.6-8.75 8.5 10-Apr-18
IDBI Bank^ 8.45- 8.5 8.45- 8.65 8.6-8.75 8.45 12-Jun-18
J&K Bank 8.65- 8.75 8.65- 8.75 8.65- 9.05 8.65^ 10-Jun-18
Karnataka Bank^* 8.55 8.55 8.55-8.95 8.5 01-Dec-18
Karur Vysya Bank* 8.65-9.3 8.65-9.3 8.65-9.3 9.3 07-Jun-18
Punjab National Bank 8.6-8.65 8.6-8.65 8.6-8.7 8.4 01-Jun-18
Punjab & Sind Bank 8.6 8.6 8.6- 8.85 8.6 16-Jun-18
State Bank of India 8.45- 8.75 8.45-9 8.6-9 8.25 01-Jun-18
South Indian Bank^^^ 8.8-9.2 8.8-9.2 8.8-9.2 8.7^ 20-Jun-18
Syndicate Bank 8.65 8.65 8.65 8.55 10-Jun-18
Tamilnad Mercantile Bank 8.95 8.95 8.95 8.95 Dec-17
UCO Bank 8.55 8.55-8.65 8.65-8.8 8.55 10-Jun-18
Union Bank of India 8.55 8.55 8.55- 8.6 8.45 01-Jun-18
United Bank of India 8.5 8.5 8.5 8.5^ 14-May-18
Vijaya Bank 8.5 8.5 8.5 8.5 20-Sep-17
Fixed Rates
Axis Bank 11.75 11.75 11.75 NA
Corporation Bank 11.95-12.45 12.45 12.45   15-Jun-18
Dena Bank 11.25 11.75 11.75 01-Feb-18
HDFC Bank 8.6-8.7 8.6-8.8 8.7- 8.8 04-Jun-18
ICICI bank 8.55-9.95 8.55-10.30 8.9-10.3 NA
Indian Bank 9.5 9.5 9.5-9.6 09-Apr-18
IDBI bank 10.10-10.35 10.10-10.35 10.10-10.35 01-Jul-17
Punjab National Bank 9.1- 9.15 9.1- 9.15 9.1- 9.2 NA
Union Bank of India 11.4 12.4-12.65 12.65 01-Apr-18
Vijaya Bank Na
Housing Finance Companies
Floating Rates :
Dewan Housing*** 8.35 8.35 8.35 NA
Tata Capital 8.7- 8.85 8.7- 9.15 8.85- 9.15   08-Jun-18
PNB Housing 8.85- 11.75 8.85- 11.75 8.85- 11.75 NA
Central Bank Housing 9.8-9.95 9.9- 9.95 9.9- 9.95 01-Jan-17
HDFC Ltd 8.5-9.1 8.5-9.2 8.6-9.2 NA
Indiabulls Housing Finance Ltd 8.5-9.85 8.5-9.85 8.5-10.75 NA
Fixed Rates :
PNB Housing 8.4- 11.75 8.4- 11.75 8.55- 11.75 NA
HDFC Ltd 8.6-9.2 8.6-9.3 8.7-9.3 NA
Indiabulls Housing Finance Ltd 9.05-10.1 9.05-10.1 9.05-11 NA
^^3 Month MCLR
** 1 Year MCLR ref rate
***8.35% onwards
^MCLR Reset frequency for Home Loans – Half Yearly
**^additional charge as per risk rating of applicant
^^^ Interest range consider rate on the basis of 6 month and 1 year MCLR both
* Interest range consider rate on the basis of 3 month and 1 year MCLR both
Note :
Fixed/Floating Rates that vary with tenures within the specified loan amounts are indicated as a range. Fixed interest rates may be subject to a revision after a specified tenure depending on the bank’s t&c. Some banks/FIs allows fixed rate only for a definite period and thereafter prevailing floating rates are made applicable.          
Data taken from respective bank’s website  (Rates as on 22 Jun 18)

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