Finance institutions as well as banks frequently charge a processing fee that is sometimes named as the managerial fee, which is intended for home loans of NRI. Such charge must be put forward with the request or application and is usually not refundable. The processing fee is the very first part of a home loan, and that a borrower needs to pay to the HFC or to the bank.
Home Loan NRI comes together with an assortment of charges like those that the rate of interest and further fees linked with those. The charges and additional fees depend upon the cost of home loan and ought to be accounted earlier.
More often than not, the processing fee is just about 0.5 % to 1 % of the complete amount of loan. A is fact that could be asked to the lender whether the processing fee comprises the service tax or not. Normally a number of taxes are there, and a few of those are processing charge that takes in the service tax, which comes, as a satisfying astonish. You could see the given examples for further details about such loan. State Bank of India takes a processing charge of 0.5 % for the Home Loan NRI, though it is inclusive of all charges or taxes. ICICI Bank takes a charge of 1 % of the total amount of such loan.
The rate of interest on such kind of loans is on the superior part as compared to a normal home loan in India. The rate of interest depends upon the lender, loan sum and the consideration a lender makes regarding the loan candidate, terms and conditions of loan. However, in a single word, it can be mentioned that the rate of interest of such loans possibly will differ from 11.5 % to 16 %. Other than the processing charge, there are an assortment of further fees possibly would be levied on this kind of loan. Here are a number of such facts associated with this specific loan are given below.
Valuation-Fees are asked by the lender to obtain the property valued. Normally, Charges of Cheque-Bounce is charged when a cheque gets bounced. Fine of Late Payment is generally something like 2 % of the payment topic to a least as well as utmost limit. The bank will request for charges of prepayment whether you want to pre pay your Home Loan NRI. Such charges of prepayment also fluctuate from lender to lender. In normal case, it is just about 2 %. If the lender finds that, the borrower has given the loan from his own money, and then the lender does not charge prepayment fees.