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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 %. 

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. 

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.

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 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.

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. 

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.

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. 

What are the foreclosure charges on a home loan?

When you pay all of your monthly installments before the end of the tenure, it is called foreclosure. On foreclosing the loan, the bank levies a charge on the applicant that they have to pay to foreclose the loan. These charges depend on the bank that has sanctioned the loan. Foreclosure charges are a part of the various types of home loan processing fees that a bank charges. 

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. 

What are prepayment charges on a home loan?

Unlike a foreclosure, a prepayment is when you pay a part of the outstanding home loan amount in advance. The prepayment charge varies from bank to bank, and also on the type of applicant who has taken the loan. One of the home loan processing charges, prepayment of your loan comes at a cost. So, before going for it, best is to understand how much amount you have to pay. 

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. 

When will I have to pay the processing fee on my home loan?

The home loan processing fee is paid by the borrowers at the time of their home loan application. After this, there are various fees and charges that one might have to pay. For example, when you need copies of any loan-related documents or in case of prepayments and foreclosures or even penalties are all included in the home loan processing charges. 

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. 

What are the various Home Loan fees and charges?

The home loan processing fees and charges to be paid when borrowing a loan from Kotak Mahindra Bank are as follows:

  • Processing fee
  • Requesting for Interest Certificate, Account Statement and Amortisation Schedule
  • Copy of any documents like NOC or Property documents
  • Changing repayment mode or swapping account
  • Switch fees
  • Prepayment and Foreclosure charges
  • Penalties on late payment or instrument dishonour

What is the GST charged on processing rates?

An 18 % GST is charged on the home loan processing fee. Kotak Mahindra Bank charges a processing fee of 0.5 % in the case of salaried professionals, while for non-salaried individuals it is 1 %. This is a non-refundable charge that the applicant has to pay at the time of loan application. 

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. 

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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.