Home Loan Hidden Charges: If you are also planning to take a home loan, then definitely read this news once. Actually, today in this news we are going to tell you about the charges secretly imposed by banks on home loan. Whose bank people do not even give you information.
Home loan has now become a big help in fulfilling the dream of owning a house. Most of the people taking home loan investigate only about the interest and processing fee. They do not get 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, it is important for the customers 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. It is possible that 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 Fee-
According to Bankbazaar.com, Login Fee is also called 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.
Home Loan Hidden Charges: These charges are collected secretly on home loan, banks do not give information
Prepayment Charge-
It is also called 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-
It is also called switching charges. This applies when you convert your floating-rate package to a fixed-rate package or from a fixed-rate package to a floating rate package. This 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 and his account becomes default and the bank has to take any action against him. The amount spent in this process is recovered from the customer.
Legal Fees-
Be it valuation of property or verification of various documents, banks appoint 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.
