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Planning to apply for a home loan? As a regulated NBFC, L&T Finance believes in total transparency. It's crucial to understand the home loan fees and charges before signing your agreement. This page provides an expert overview of what you might encounter, from standard processing charges to potential home loan hidden charges. Our breakdown helps you calculate your total cost of borrowing effectively by using the mandatory Key Fact Statement (KFS) as mandated by the Reserve Bank of India (RBI).
When evaluating what is processing fee for loan applications, you must look beyond the initial cost. Per the RBI’s Fair Lending Practice guidelines, all loan processing charges must be transparently disclosed upfront in the Key Fact Statement (KFS).
The following rates are indicative. For specific calculations, use a Home loan processing fee calculator.
| Fee Category | Indicative Charges (Non-Refundable) |
|---|---|
| Home loan processing fee | Up to 3% of sanctioned amount + GST |
| Login Fees | Up to ₹5,000 (Non-refundable) |
| EMI Dishonour/Bounce Charge | ₹500 to ₹2,000 (Based on loan amount) |
| Penal Charges (LPC) | Levied as per board policy (No interest capitalization) |
| Interest Conversion Fee | 0.5% to 1% of balance loan amount |
| Document Retrieval Fee | Up to ₹1,000 + GST |
| Repayment Swap Charges: | Up to ₹500 per swap |
| SARFAESI Related Charges | ₹500 to ₹20,000 (Based on action type) |
| Foreclosure (Floating Rate) | Nil for Individuals (Mandatory RBI Compliance) |
| Foreclosure (Fixed Rate) | 2% to 3% based on tenure |
Note: Always check for home loan hidden charges such as "document retrieval" or "repayment instrument swap" fees. Under the latest RBI Fair Lending Practices, these must be explicitly mentioned in your KFS to be valid.
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
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