Home Loan Processing Fees and Charges

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Home Loan Fees and Charges

When you apply for a Home Loan, you have to pay a processing fee. This is a one-time fee, which takes care of everything from assessing your application to documentation and approvals.

This fee is a standard percentage of your loan amount and guarantees that your application receives the attention it deserves.

Apart from the processing fees, there are a few other costs involved including legal charges, property valuation and administrative expenses.

Combined with your rate of interest, these costs make up the total cost of completing the Home Loan process.

If you know these costs up front, you can plan better and budget with confidence.

Fee/Charge Description	Amount in Rs.
Loan Processing Fees	Upto 2% of loan amount (plus taxes and any other applicable statutory dues) Note: ➣ Upfront Processing Fee of ₹ 5,000 (plus taxes and any other applicable statutory dues) shall be collected at the time of login which is non-refundable ➣ Non-refundable fee will be adjusted in overall Processing Fee before disbursement
Valuation Fees	Upto Rs. 5000/- (plus taxes and any other applicable statutory dues) Note: ➣ Valuation Fees are levied by the Bank towards the technical valuation and legal verification of the property for the purpose of determining its eligibility for mortgage ➣ Valuation fees are payable irrespective of the outcome of such appraisal or verification ➣ Kindly note that valuation fees are a one-time, non-refundable fee collected at the time of loan disbursement
Interest Certificate/ Statement of Account/ Amortisation Schedule	Accessed via self-service mode on Mobile Banking/Net Banking/ WhatsApp Banking: NIL Charges Physical copy requested through Customer Service/Branch: ₹ 250 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Duplicate No Objection Certificate)	₹100 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Copy of property documents, etc.)	₹500 (plus taxes and any other applicable statutory dues)
Duplicate Issuance of List of Documents	₹500 (plus taxes and any other applicable statutory dues)
Hard copy of any other documents /letter (e.g. Subsidy Confirmation Letter, Credit Opinion Letter, Interest paid confirmation letter, etc.)	₹500 (plus taxes and any other applicable statutory dues)
Repayment mode/ Account swap charges	₹500 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Floating)*	Switch to External Benchmark Rate (Repo Rate) for Housing/ Extension/ Improvement: 0.5% of the principal outstanding and undisbursed amount (if any) at the time of conversion with a cap of ₹10,000 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Fixed)*	₹2500 (plus taxes and any other applicable statutory dues)
Switch Fee (Fixed to Floating)*	0.5% per annum of each residual tenure with a maximum cap of 3% Note: In case of Hybrid Loans, the Fixed to Floating Rate Switch Option can only be availed after the completion of the Fixed Rate Tenure
Reschedulement of Loan Term	₹500 (plus taxes and any other applicable statutory dues)
Pre-Payment Charges	For Floating Rate Loans where the Borrower(s) is ➣ Individual: NIL ➣ Micro and Small Enterprises: NIL ➣ Others (Medium Enterprises, Non-Individual Borrowers, Companies, etc.): 2% For Fixed Rate Loans where the Borrower(s) is ➣ Individual: 1% of each year of residual period to original maturity at the time of Pre-Payment of the loan shall be levied on the Pre-Payment Amount (maximum capping of 3%) ➣ Micro and Small Enterprises and the Loan Amount at the time of booking the Loan is less than or equal to 50 Lacs: NIL ➣ Micro and Small Enterprises and the Loan Amount at the time of booking the Loan is greater than 50 Lacs: 2% ➣ Others (Medium Enterprises, Non-Individual Borrowers, Companies, etc.): 2% Note: 1. For Term Loans, current Outstanding to be considered for Full Pre-Payment Charges 2. For Dropline Overdraft, current Outstanding Limit to be considered for Full Pre-Payment Charges 3. For Part Pre-Payment: The borrower shall be required to submit the Bank any suitable proof of funds being from own sources 4. In the case of Hybrid Loans, Pre-Payment charges as applicable to Fixed Rate Loans will be levied during the Fixed Rate period. Thereafter, upon conversion to the Floating Rate period, Pre-Payment charges applicable to Floating Rate Loans will be applicable.
Instrument (Cheque/ECS/Mandate) Dishonour Charges	₹750/- Per Instance
Delay/default in payment of principal or interest/ outstanding balance	8% per annum on overdue amount
Non-payment of dues/ charges/ fees payable under loan/facility Agreement	8% per annum on overdue amount
Levy of penal charge for non-compliance of sanction terms including but not restricted to non-submission of title documents, non-commencement of construction as per undertaking, adverse repayment behaviour, other breach of agreement terms	₹5.50 per day per lac or proportionately shall become due & payable on underlying exposure (from the day of breach)
Delay or non-creation/perfection of facility or security/guarantee, etc. documentation in favor of the Bank	Penal charges at ₹5.50 per day per lac or proportionately for any delay beyond stipulated days as per Sanction letter /Facility Agreement upto 180 days from the original due date (“ODD”) Beyond 180 days, penal charges at ₹11 per day per lac. Note: ➣ The said penal charges shall be calculated on sum of limits of revolving lines and outstanding of non-revolving lines of both fund and non-fund based limits to which the security extends ➣ The term non-creation of security shall mean failure of the Borrower/Security Provider to create security in such form and manner as per the agreed terms mentioned in Sanction Letter/Facility letters or Facility/ Loan Agreements or any other Document/Instrument to secure the loan/financial facility availed from the Bank
Non-Submission of LEI Code	Rs 250/- per Month (plus taxes and any other applicable statutory dues) Note: LEI number should be Valid at the time of Disbursal to the Bank and valid LEI number should be made available throughout the tenure of the Loan. In the event of non-compliance, the applicable charges shall be applicable.
Annual Renewal Charges	0.25% of the Overdraft Limit (dropped limit after reduction of annual drop) shall be collected on the due date of renewal Note: Not Applicable for Smart Home Loan Overdraft product
Non-Utilization Charges	For Individual Customers with Home Loan Overdraft Facility: If average utilization of facility limits for a quarter is below 25% of sanctioned limits, 0.4% p.a. on under-utilized limit or proportionately shall become due & payable on underlying exposure (from the day of breach) For Non-Individual Customers with Home Loan Overdraft Facility: If average utilization of facility limits for a quarter is below 60% of sanctioned limits, commitment charges of ₹5.50 per day per lac or proportionately on unutilized limits Note: Not Applicable for Smart Home Loan Overdraft product
Penal charges in case of overline accounts or where the amount drawn by the Borrower is beyond the maximum Overdraft Limit	8% per annum on overdue amount
Note: ➣ Stamp Duty on Home Loan Agreement, Overdraft Agreement, Guarantor Agreement, Registration Charges etc. vary from State to State. Stamping/Notarisation of RBI and other Affidavits are as applicable ➣ Charges for other Services would be specified as applicable when the Customer applies for those services and the same shall be payable by the borrower alone e.g. Revalidation of Sanction, Change in Property, Reschedulement of Loan, Change in EMI Date, Solvency Charges, Legal Charges etc. ➣ Taxes/ other statutory levies may be charged to the Borrower if applicable as per Government/ RBI directives ➣ In the event Loan Recall Notice stands withdrawn upon Customer regularizing the loan account, then in such cases if Customer comes for premature payment then charges can be collected as per contractual terms of the Loan Agreement ➣ For priority sector loans up to ₹50,000, loan related charges (including guarantee fees of credit guarantee schemes) and ad hoc service charges/inspection charges are not applicable. In the case of eligible priority sector loans to SHGs/JLGs, this limit is applicable per member and not to the group as a whole ➣ *The borrower can opt for switching multiple times during the loan tenure

Click here to refer to the older General Schedule of Features and Charges (GSFC) applicable for Home Loans till 12th October 2026.

Type of Other Home Loan Fees & Charges

Home loan processing fees can differ based on the type of loan you apply for. Each loan variant serves a specific purpose and comes with its own fee structure. Below is a clear overview to help you understand the charges when applying with Kotak Mahindra Bank.

Home Renovation Loan
A Home Renovation Loan is used to upgrade, repair, or redecorate your home. Processing fees for this loan range from 0.25% to 2.00%. There are no prepayment charges applicable for this loan type.
Home Loan Balance Transfer
A Balance Transfer allows you to move your existing home loan to another bank for better interest terms. Processing fees for balance transfer loans can go up to 6%. Foreclosure charges are nil for floating-rate loans, while fixed-rate loans may attract charges up to 4% of the principal outstanding.
Home Construction Loan
This loan supports borrowers who are building a home. Processing fees for home construction loans can go up to 2%. There are no prepayment charges on floating interest rates, while charges on fixed interest rates depend on lender terms.
Bridge Loan
A Bridge Loan helps manage short-term funding needs, typically when purchasing a new property before selling an existing one. Processing fees usually start at 0.35% and can go up to 3%.

Understanding these charges in advance helps you plan better and choose the home loan option that aligns with your financial needs—without any surprises later.

Have specific doubts? Talk to our Home Loan Advisor

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Disclaimer (Things you should know):

For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

* Rs. 5,000 Flat processing fee applicable for women applicants.

Frequently Asked Questions

What is the loan processing fee?

Home loan processing fees are non-refundable charges that you have to pay at the time of your home loan application.

These are the charges towards the services provided by the lender. Each financial institution has a different processing fee for home loan. Kotak Mahindra Bank charges 0.5 % processing fee for salaried and 1 % for self-employed applicants. This is among the lowest home loan processing fee in India.

In the absence of salary slips, especially for non-salaried individuals, applicants may submit bank statements and complete ITR details as required by the lending bank. So, although salary slips improve your chances to get a home loan, it’s not mandatory

Is processing fee on home loan refundable?

No, the home loan processing charges are non-refundable in nature. It means, that if the bank rejects a loan application, the amount will not be refunded. That being said Kotak Mahindra Bank’s home loan processing fee is among the lowest. For a salaried applicant, it is 0.5 %, while for a self-employed applicant it is 1 %.

How is processing fee calculated?

The processing fee for home loan is a percentage charged on the loan amount that you have applied for. You have to pay it during the time of the application. These home loan processing fees are non-refundable, i.e. the bank will not refund the amount, whether the loan application is approved or not.

Is there an option for zero processing fee home loan?

No, the applicant has to pay a processing fee at the time of the home loan application. It is a percentage of the principal loan that you have applied for and is non-refundable. However, with Kotak Mahindra Bank you have to pay only a minimal home loan processing fee, i.e., 0.5 % for salaried and 1 % for self-employed applicants.

What is the processing fee for Kotak Mahindra Bank’s home loans?

To process your home loan application, the bank charges a non-refundable processing fee. Every financial institution charges its own home loan processing fee while applying for a loan or for a home loan balance transfer. Kotak Mahindra Bank offers one of the lowest home loan processing fees; 0.5 % for salaried and 1 % for self-employed applicants.

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