When applying for a home loan, understanding the Bank of India home loan processing fees and other charges helps in planning your expenses. The fee covers administrative costs, including document verification and legal checks. Understanding these charges ensures a smooth loan process without unexpected costs.
Apply for a Bank of India Home Loan with a special processing fee offer tailored just for you.
Bank of India Home Loan Processing Fees Structure
Here’s a detailed breakdown of the processing fees for various Bank of India home loan schemes, helping you understand the charges associated with each loan type. Whether you’re buying a new home or seeking additional funding, this guide provides clear and straightforward information.
| Loan Type / Category | Processing Charges |
|---|---|
| Star Home Loan / Star Smart Home Loan | 0.25% of loan amount (Min ₹2,500 – Max ₹20,000) |
| Star Diamond Home Loan | Flat ₹50,000 (irrespective of loan amount) |
| CRE-RH Home Loans | Attracts 0.50% extra interest rate |
| Star Top-Up Loan | Same as applicable Home Loan + 0.50% premium |
| Senior Citizens (60+ years) | No processing charges on personal loans |
| Loan Against Property – Term Loan | 1% of sanctioned loan amount (Min ₹5,000 – Max ₹50,000) |
Source: Processing Charges on Home Loan Schemes
Bank of India Home Loan Top Up Processing Fees Structure
Looking to increase your existing home loan with a top-up? Here’s a quick overview of the processing fees involved in Bank of India’s Home Loan Top-Up options, so you know exactly what to expect before applying.
| Loan Type / Category | Processing Charges |
|---|---|
| Top-Up on Standard Home Loans | 0.35% of loan amount (Min ₹3,500 – Max ₹30,000) |
| Top-Up on Star Diamond Home Loan | ₹60,000 (irrespective of the loan amount) |
| Interest Rate | Existing home loan interest rate + 0.50% premium |
Also Read: Top-Up vs Personal Loan
Bank of India Home Loan Other Charges
In addition to the primary processing fee, there are several other charges that may arise during the home loan process. These additional costs include:
| Charge Type | Details |
|---|---|
| Prepayment Penalty | No prepayment penalty |
| PPC – Individuals | 0.25% of loan amount (Min ₹1,500 – Max ₹20,000) |
| PPC – Non-Individuals | 0.50% of loan amount (Min ₹3,000 – Max ₹40,000) |
| Home Loan Takeover (BSD) | Additional 0.10%, subject to a minimum ROI of 8.25% p.a. |
| Smart Home Loan (above ₹2 Cr) | Additional 0.25% over the applicable interest rate |
| Credit Report Access | ₹50 per report |
| CERSAI Fee | – ₹100 for creation/modification of security interest (Loans above ₹5 lakh) – ₹50 for creation/modification of security interest ( Loans up to ₹5 lakh) |
| CERSAI Satisfaction of Charge | No charges |
| Late Filing Fee (31–40 days delay) | – 2x the applicable fee (31–40 days delay) – 5x the applicable fee (41–50 days delay) – 10x the applicable fee (51–60 days delay) |
Read More: How to Increase CIBIL Score
Compare Home Loan Processing Fees of Top Banks and HFCs
Here’s a quick comparison of the home loan processing fees charged by some of India’s leading banks and HFCs:
| Bank | Home Loan Processing Fee |
|---|---|
| SBI (State Bank of India) | 0.35% of the loan amount (min ₹2,000, max ₹10,000) + GST |
| HDFC Bank | Upto 1.50% of the loan amount or Rs. 5000/- whichever is higher |
| ICICI Bank | Upto 2% of loan amount |
| Axis Bank | 1% of the loan amount or ₹10,000 (whichever is higher) + GST (as applicable) |
| Kotak Mahindra Bank | 0.5% for salaried and 1% for self-employed applicants |
| Bajaj Housing Finance | 0.5% of the loan amount (Goes upto 7% in some cases) |
| Tata Capital Home Loan | Upto 3% of loan amount+ GST |
| LIC HFL | 0.25% of the loan amount |
Also Check: Home Loan Processing Fees and Charges
Why Does Bank of India Take Processing Fees?
Bank of India charges processing fees to cover the administrative costs of evaluating, sanctioning, and maintaining home loan accounts. These fees are charged separately as interest only applies to the loaned amount, not the services rendered. This structure is part of the Bank of India Home Loan Processing Fees and Charges framework, aligned with industry practices.
Is Bank of India Home Loan Processing Fees Refunded?
No, Bank of India Home Loan processing fees are generally non-refundable, even if the loan is not availed after sanction. These charges cover the cost of processing and are collected upfront.
When Does Bank of India Collect Home Loan Processing Fees?
Bank of India collects home loan processing fees upfront at the time of loan application submission. These fees cover administrative costs and are part of the Bank of India Home Loan Processing Fees and Charges framework.
Am I Still Liable to Pay the Processing Fees if My Home Loan is Sanctioned But I Don’t Avail It?
Yes, you are still liable to pay the processing fees if your home loan is sanctioned but not availed. The fee is charged for processing the application, regardless of loan disbursal.
What Happens if Bank of India Home Loan Processing Fees Cheque Gets Bounced?
If your Bank of India home loan processing fee cheque bounces, the bank may halt the loan application process and impose cheque bounce charges. For amounts up to ₹1 lakh, the fee is ₹100; for amounts above ₹1 lakh, it’s ₹200 per instrument.
Is it Possible to Get Bank of India Home Loan with Zero Processing Fees?
Yes, it is possible to obtain a Bank of India home loan with zero processing fees during special promotional periods when the bank waives such charges. These waivers are part of the Bank of India Home Loan Processing Fees and Charges framework and are typically offered during festive seasons or limited-time offers.
Source: State-run banks waive home loan processing fees to boost demand
How to Get Bank of India Home Loan Processing Fees Concession?
You may get a concession on Bank of India home loan processing fees if you are a senior citizen (60+), a retired Bank of India employee, or a pensioner drawing a pension from the bank. These categories are usually exempt from charges. Female borrowers with a CIBIL score below 675 may get a 0.05% interest rate concession.
Also Read: Bank Of India Home Loan Eligibility Criteria 2025
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How is Bank of India Home Loan Processing Fees Calculated?
Bank of India charges a processing fee based on a fixed percentage of the sanctioned home loan amount. This fee is subject to both minimum and maximum limits as per the bank’s guidelines.
Standard Fee Structure:
Bank of India typically charges 0.25% of the sanctioned loan amount, with:
- Minimum Fee: ₹2,500
- Maximum Fee: ₹20,000
Example Calculation:
If you apply for a home loan of ₹40 lakh:
- 0.25% of ₹40,00,000 = ₹10,000
- Since this amount falls within the cap range, the processing fee would be ₹10,000.
Important Note
These fees are charged upfront during the application process and are non-refundable. In addition to the processing fee, other costs like legal and technical evaluation charges may apply depending on the loan case.
Also Check: Home Loan Eligibility Calculator
Factors Affecting Bank of India Home Loan Processing Fees
Several factors determine the processing fees for a Bank of India home loan. These factors impact the overall cost of loan approval and vary based on loan type, borrower profile, and bank policies.
| Factor | Description |
|---|---|
| Loan Amount | Processing fees are often a percentage of the loan amount. Larger loans may result in higher absolute fees. |
| Lender Policies | Different lenders have varying fee structures based on their operational costs and customer acquisition strategies. |
| Credit Score | Applicants with higher credit scores may be eligible for lower fees, reflecting reduced lending risk. |
| Loan Type | Specific loan products, such as top-up loans or balance transfers, may have distinct processing fee structures. |
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Conclusion
Understanding the Bank of India home loan processing fee is crucial before applying for a loan. The fee depends on the loan amount, borrower profile, and other factors. Reviewing the latest charges and additional costs helps in better financial planning. Always check with the bank for updated policies to avoid unexpected expenses.
Still confused? Reach out to our team of experts and get all your home loan queries sorted in no time!
Frequently Asked Questions
Bank of India charges a processing fee of up to 0.25% of the loan amount for individual applicants, with a minimum of Rs.2,500 and a maximum of Rs.20,000.
Yes, for non-individual applicants, the processing fee is up to 0.50% of the loan amount, with a minimum of Rs.3,000 and a maximum of Rs.40,000.
No, the processing fee is non-refundable, regardless of whether the loan is sanctioned or not.
Yes, other charges may include legal and technical evaluation fees, documentation charges, and late fee, which vary based on the loan amount and property location.
Occasionally, Bank of India may offer concessions or waive processing fees during special promotions or festive seasons. It’s advisable to check with the bank for current offers.
As of April 2025, the interest rates start from 8.10% per annum, varying based on the applicant’s credit score and loan amount.
For floating-rate home loans, there are no prepayment charges. However, fixed-rate loans may attract prepayment penalties as per the loan agreement.
Bank of India offers home loans with a maximum tenure of up to 30 years, subject to the borrower’s eligibility and age.
HDFC Home Loan
SBI Home Loan
