Home Loan Overdraft Facility | Benefits & Its Functions
Jan 28, 2026 | 4 mins read
Planning to apply for a Home Loan? It's important to understand the associated fees and charges. This page provides a comprehensive overview of the various fees you might encounter during the Home Loan process. From processing fees to documentation charges, we've got you covered. Here is a simple break down of the fees and associated charges, so you can make informed decisions about your Home Loan.
When applying for a Home Loan, it's important to understand the various fees and charges associated with the process. Here are some common types of Home Loan charges:
1. Processing Fees:
A one-time fee charged by the lender to process your loan application.
2. Documentation Charges:
Fees levied for verifying and processing the required documents.
3. Stamp Duty:
A government fee charged on the loan agreement.
4. Legal Fees:
Fees charged for legal services related to property title verification and other legal formalities.
5. Valuation Fees:
Fees charged for property valuation to assess its market value.
6. Prepayment Charges:
A penalty fee charged for prepaying the loan before the end of the tenure.
It's essential to inquire about these fees and charges upfront to avoid any surprises during the loan process.
Processing Fees
Up to 3% of sanctioned amount + applicable taxes
Login Fees:
Up to Rs.5000 /- (inclusive of applicable taxes) (nonrefundable)
EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate
As shown in the table below
Penal Charge/Late Payment Charges (LPC):
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Annual Maintenance Charges:
NA
Document retrieval / Duplicate NOC charges
Duplicate NOC (charge is applicable for paper copy post 3 free copies per customer), list of documents, Photo copies of the documents (property & others) Up to Rs.1000/- + applicable taxes
Repayment instrument swap fee (per swap)
Up to Rs. 500/- + applicable taxes (applicable only for branch walk-ins)
Asset valuation and verification fee
Up to 1% of loan amount + applicable taxes
Documentation and repayment setup fee
Up to Rs. 2,000/- + applicable taxes
Interest conversion fee
Floating interest rate to floating interest rate: 0.5% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes
Floating interest rate to a fixed interest rate and vice versa: 1% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes
Charges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002:
Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice/ Publication Demand Notice/Publication of Sale cum Auction Notice. All applicable taxes will be added.
Loan Cancellation Charges:
Up to Rs. 5000/ – + applicable taxes
Foreclosure / Full Prepayment Charges – Home Loan
For Individual / Non-Individual Borrowers –
Pre-payment Charges – Home Loan:
For Individual / Non-Individual Borrowers –
Non-compliance fee
Up to 1% of principal outstanding + applicable taxes
Field collection service fee
Up to Rs. 500/- per collection + applicable taxes
Legal fees and charges
As per actuals or Up to Rs. 50,000/- whichever is lower + applicable taxes
Recovery charges
As per actuals or Up to Rs. 1,00,000/- whichever is lower + applicable taxes
Auction fees
Up to 1% of auction sale amount + applicable taxes
While rare, some promotional offers might include zero processing fees.
GST increases the overall cost of borrowing by adding to the processing and service charges.
Pre-approved loans may offer preferential rates and faster processing.
Yes, you can request a waiver, but approval depends on the bank's discretion.
Yes, under Section 80C and Section 24, tax benefits are available on principal and interest payments, respectively.
The procedure involves depositing property documents with the lender and completing the legal formalities.
The processing fee is typically paid at the time of loan application submission.
Incidental charges cover additional costs incurred by the lender, such as legal and valuation fees.
These include processing fees, legal and technical evaluation fees, stamp duty, registration, and GST on services.
Processing fees are due at the application stage of the Home Loan process.
Housing Loan
Buying a home in Mumbai was always a dream of mine, and L&T Finance has made this dream come true. They offered competitive interest rate, quick approval with easy documentation. I would highly recommend L&T Finance to anyone looking for a reliable home loan provider.
Yadika Hussain
Mumbai
Housing Loan
L&T Finance made my homeownership and business growth easier! After taking a home loan with another bank, I needed additional funds to expand my business. L&T offered a quick response, pre-approval, & a streamlined process with minimal paperwork. Plus, I received lower interest rate & maximum funding!
Amol Hirawadekar
Mumbai
Housing Loan
Choosing L&T Finance for our home loan was seamless. The team was supportive, with transparent documentation, quick responses, and competitive rates. Their efficient process made our home-buying journey smooth, and the L&T Emerald’s location, amenities, and security make it the perfect choice for our family.
Amit Chaturvedi
Mumbai, Maharashtra
Housing Loan
The process of applying L&T Finance Housing loans was a very easy and seamless process. And the credit goes to L&T Finance's entire Housing loan team. They have been extremely helpful & quick response. A very transparent process, the best of the market rates and quick disbursement.
Amit Chaturvedi
Powai, Mumbai
Housing Loan
I was looking to buy a property and L&T finance Housing Loans stepped in forward to cater to all my demands, the ease of the documentation processes and their commitment to provide disbursement at the earliest. Whatever I asked, the team was there support at every step to get me through.
Mr. Sharad Pandey
Captain, Merchant Navy
Home Loan Overdraft Facility | Benefits & Its Functions
Jan 28, 2026 | 4 mins read
Understanding Loan Repayment: Meaning, Process, and Importance
Feb 4, 2025 | 4 mins read
What is a Domicile Certificate? Meaning, Use & How to Get One
Sep 25, 2025 | 4 mins read
What is a Home Loan Sanction Letter? Meaning, Format & Components
Sep 9, 2025 | 4 mins read
What is Form 16? A Comprehensive Guide
Aug 26, 2025 | 4 mins read
Encumbrance Certificate - Meaning, Types and Importance
Aug 26, 2025 | 4 mins read
What is the ROI for Home Loan and How to Calculate it?
Jun 26, 2025 | 4 mins read
Immovable Property: Types, Rights, and Differences
May 6, 2025 | 4 mins read
What is e-Mandate and How it Works?
Jun 9, 2025 | 4 mins read
What Is Memorandum of Deposit of Title Deed (MODT) in Home Loan?
Jun 9, 2025 | 4 mins read
