1. Home
  2. FAQs
FAQ - L&T Finance

Topics

Are there any hidden charges in a Loan Against Property?

Apart from the disclosed fees like processing fees, legal and technical charges, and stamp duty, some lenders may impose additional charges such as penalties for late payments, document retrieval fees, or cheque bounce charges. Reviewing the full loan agreement and disclosures from the lender is crucial to avoid surprises and hidden charges.

How is the processing fee for a Loan Against Property calculated?

The processing fee is usually a percentage of the sanctioned loan amount, varying from lender to lender. At L&T Finance, the processing fee can be up to 3% of the sanctioned loan amount plus applicable taxes. It includes initial charges for processing your loan application and is collected partially upfront and at the time of disbursement.

Is the processing fee refundable if my loan application is rejected?

No, processing fees are strictly non-refundable. These fees cover administrative efforts and due diligence involved in processing your application, whether or not the loan is ultimately sanctioned.

Can processing fees vary depending on the loan amount?

Yes, processing fees as a percentage may be reduced with higher loan amounts. While the exact fee slabs differ by lender, generally, larger loans attract relatively lower percentage processing fees as economies of scale kick in.

Is stamp duty applicable on a Loan Against Property?

Yes, stamp duty is applicable on loan agreements as per state laws, typically ranging from 1-3% of the property value.

Are there any penalties for early loan repayment?

Prepayment or foreclosure penalties may apply depending on the loan structure. Typically, these charges range from 2% to 5% on the outstanding principal or prepayment amount. However, recent RBI guidelines have mandated waiver of such charges on floating rate loans sanctioned or renewed after January 1, 2026, for individual borrowers with non-business usage and MSEs.

Is stamp duty applicable to a Loan Against Property?

Yes, stamp duty is a mandatory state government tax on registering loan agreements secured by property. It typically ranges from 1% to 3% of the property value, varying by state. This cost must be borne by the borrower to ensure the loan document's legal validity.

Need Further Assistance?

Chat instantly with us or request a call.

faq chat

Chat with us

24x7
faq call

Talk to us

9.00 AM - 6.00 PM