Home Loans

Required Information About Home Loan NRI

Financial institutions and banks often charge a processing fee, sometimes called an administration fee, for NRI’s home loans. This fee must be disclosed with the request or application and is generally non-refundable. The processing fee is the first portion of a home loan and the borrower must pay the HFC or the bank.

Home Loan NRI comes together with various fees such as interest rate and other fees associated with them. Costs and surcharges depend on the cost of the home loan and must be accounted for beforehand.

Most of the time, the processing fee is only about 0.5% to 1% of the full loan amount. A, it is a fact that the lender may be asked whether the transaction fee includes the service tax. There are normally a number of taxes, and a few of them are the processing fee, which comes as a satisfying surprise acknowledging the service tax. You can review the examples provided for more details on this loan. State Bank of India charges a processing fee of 0.5% for Home Loan NRI although all fees or taxes are included. ICICI Bank charges 1% of the total amount of this loan.


The interest rate on this type of loan is superior compared to a regular home loan in India. The interest rate depends on the lender, the loan amount, and the lender’s assessment of the loan candidate, loan terms and conditions. However, in a word, it can be said that the interest rates of such loans will probably vary between 11.5% and 16%. Apart from the processing fee, there are various additional fees that could possibly be charged for this type of loan. Below are some facts about this particular loan.

Valuation-Fees are charged by the lender to obtain the property being valued. Normally, Check-Refund Fees are charged when a check bounces. The Late Payment Penalty is usually something like 2% of the minimum and maximum amount of the payment issue. The bank will charge a prepayment fee whether you want to prepay your Home Loan NRI. Such prepayment fees also fluctuate from lender to lender. In normal condition, it is only about 2%. If the lender finds this, the borrower has made the loan out of his own money, in which case the lender will not charge an upfront fee.


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