If you’ve been eyeing a new home and thinking about taking out a loan from IDBI Bank, you’re likely wondering about the costs involved. It’s not just about the interest rate—processing fees and other charges can make a real difference. A clear idea of these expenses can help you budget wisely and avoid any last-minute surprises.
IDBI Bank Home Loan Processing Fees
Understand the processing fees involved so you can factor them into your overall cost when opting for a home loan.
Home Loan (Plain Vanilla & Rural/Semi-Urban Housing Loan)
| Loan Amount | Card PF – Salaried & SEP | Card PF – SENP |
|---|---|---|
| Up to ₹35 Lakh | ₹5,000 | ₹6,000 |
| ₹35 Lakh – ₹75 Lakh | ₹7,500 | ₹8,500 |
| ₹75 Lakh – ₹1.25 Cr | ₹13,500 | ₹14,500 |
| Above ₹1.25 Cr | ₹13,500 | ₹15,000 |
| Inward BT or BT + Top-up | Nil | Nil |
Plot Loan for House Construction
| Loan Amount | Card PF – Salaried & SEP | Card PF – SENP |
|---|---|---|
| Up to ₹35 Lakh | ₹6,000 | ₹7,000 |
| ₹35 Lakh – ₹75 Lakh | ₹8,500 | ₹9,500 |
| ₹75 Lakh – ₹1.25 Cr | ₹14,500 | ₹16,000 |
| Above ₹1.25 Cr | ₹14,500 | ₹16,000 |
| Inward BT | Nil | Nil |
Mortgage Loans (ML)
| Loan Type | Card PF |
|---|---|
| All Loan Amounts | 0.50% – 1.00% of the loan amount (minimum ₹10,000) |
Other Applicable Fees
| Charge Type | Amount |
|---|---|
| Inward Balance Transfer (All Loans) | 0.50% of the loan amount, minimum ₹10,000 |
| Minimum Fee at Login | ₹10,000 + taxes (balance payable before disbursement) |
| ML Overdraft Renewal Charges | 0.25% of the sanctioned amount |
Loan for Insurance Premium (LIP)
| Feature | Charge |
|---|---|
| All Loan Amounts | NIL |
Check Out: IDBI Bank Home Loan Interest Rate Calculator
IDBI Bank Home Loan Other Fees and Charges
Be aware of any extra charges, such as prepayment penalties or overdue fees, that may apply to your home loan.
Foreclosure Charges (Plus taxes)
| Loan Type | Condition | Charge |
|---|---|---|
| Home Loans to individuals (Floating Rate) | – | NIL pre-payment/foreclosure charges |
| Mortgage Loans to individuals (non-business purpose) | – | NIL pre-payment/foreclosure charges |
| Mortgage Loans to individuals (business purpose) | Up to 12 months of disbursement | 3% on sanctioned loan amount |
| Beyond 12 months | 3% on outstanding loan amount | |
| Mortgage Loans to non-individuals | Up to 12 months of disbursement | 3% on sanctioned loan amount |
| Beyond 12 months | 3% on outstanding loan amount | |
| Fixed Rate Loan – Own Funds (≤ 6 months) | – | 2% on outstanding loan amount |
| Fixed Rate Loan – Own Funds (> 6 months) | – | NIL pre-payment/foreclosure charges |
| Fixed Rate Loan – Balance Transfer | – | 2% on outstanding loan amount |
Part Payment Terms and Conditions
| Loan Type | Condition | Charge |
|---|---|---|
| Home Loan | Max Number of Payments | Not more than one per month |
| Minimum Amount | ₹25,000 | |
| Mortgage Loan Variants | Max Number of Payments | 4 times per financial year |
| Max Amount (per financial year) | Up to 30% of sanctioned amount | |
| Minimum Amount | ₹25,000 | |
| Additional part/pre-payments beyond limit | Not allowed |
Penal Charges for Default/Delayed Payment
| Charge Type | Rate |
|---|---|
| Penal Interest | 2% per annum on overdue amount (plus applicable taxes) |
Property Inspection Charges (Plus taxes)
| Loan Type | Loan Amount Slab | Charge |
|---|---|---|
| Home Loan (Rural/Semi Urban/Urban) | Up to ₹35 Lakh | ₹750 |
| ₹35–₹75 Lakh | ₹1500 | |
| Above ₹75 Lakh | ₹2000 | |
| Mortgage Loans & Variants | Up to ₹50 Lakh | ₹750 to ₹1500 |
| ₹50–₹100 Lakh | ₹1250 to ₹2500 | |
| Above ₹100 Lakh | ₹2500 to ₹5000 |
Partial Property Release / Property Swapping Charges (Plus taxes)
| Charge Type | Amount |
|---|---|
| Property Swapping Charges | ₹25,000 * |
| Partial Release of Property | ₹10,000 |
Legal & Technical Charges for Home Loans (All Variants) – Plus taxes
| Property Location | Legal Charges | Technical Charges |
|---|---|---|
| Metro & Urban | ₹2500 | ₹2500 |
| Semi Urban & Rural | ₹2500 | ₹2500 |
Interest Rate Conversion Charges (Plus taxes)
| Conversion Type | Account Type | Charge |
|---|---|---|
| Floating rate → RLLR linked | Individual | ₹5000 |
| Floating rate → RLLR linked | Non-individual | 0.25% of outstanding loan amount |
| Home Loan Interest Saver → Regular Loan / Mortgage Loan | – | 0.50% of outstanding loan amount |
| Fixed Rate Loan → Floating Rate (prior to end of fixed term) | – | 0.50% of outstanding loan amount |
Other Charges
| Service | Charge |
|---|---|
| Cheque Book Issuance | ₹5 per leaf |
| Omni Pay Issuance | ₹1.10 per ₹1000; Minimum ₹53 |
| Other Charges | As per latest Schedule of Charges (SOC) of FDOD |
Suggested Read: IDBI Bank Home Loan Customer Care
Compare Home Loan Processing Fees of Top Banks and HFCs
| Banks/ NBFCs | Processing Fees |
|---|---|
| SBI | 0.35% of the loan amount + GST Minimum: ₹2,000 + GST Maximum: ₹10,000 + GST |
| HDFC | Up to 0.50% of the loan amount or ₹3300 (whichever is higher) |
| LIC Housing Finance | 0.25% of the loan amount Minimum: ₹ 5,000 Maximum: ₹50,000 |
| ICICI Bank | Up to 2% of the loan amount |
| Bank of Baroda | Up to 0.40% of the home loan |
| Bank of India | 0.25% of loan amount (Min ₹2,500 – Max ₹20,000) |
| Canara Bank | 0.50% (Min Rs.1500/-+GST and Max. Rs.10,000/-) |
| Bajaj Housing Finance | Up to 4% of the loan amount |
| PNB Housing Finance | 0.35% of the loan amount Min: Rs. 2,500/Max: Rs. 15,000/ |
| IDBI Bank | 0.50% of loan amount |
| Axis Bank | 1% of the loan amount, minimum Rs. 10,000; Rs. 5,000 +GST upfront |
Why Does IDBI Bank Take Processing Fees?
- Administrative Costs: Covers application processing, documentation, and verification efforts.
- Legal & Technical Checks: Funds property valuation, legal due diligence, and technical assessments.
- Risk Assessment: Supports credit checks, eligibility evaluations, and loan structuring.
- Compliance & Regulation: Ensures adherence to banking norms and regulatory requirements.
Suggested Read: Upfront Payment vs. Home Loan
Is IDBI Bank Home Loan Processing Fees Refunded?
IDBI Bank’s home loan processing fees are generally non-refundable and are retained by the lender regardless of whether the loan is closed early, rejected post-approval, or repaid prematurely.
These fees cover administrative expenses, including documentation, verification, legal due diligence, and technical assessments conducted during the loan setup.
Refunds are rare and apply only under specific conditions explicitly outlined in the loan agreement or mandated by regulatory guidelines.
Suggested Read: Plot Loan vs. Home Loan
When Does IDBI Bank Collect Home Loan Processing Fees?
IDBI Bank collects a one-time, non-refundable processing fee when you submit your home loan application. This fee covers the cost of evaluating your application, including verifying your eligibility and assessing your financial profile.
Am I Still Liable to Pay The Processing Fees if My Home Loan is Sanctioned But I Don’t Avail It?
Yes, you are typically liable to pay the processing fee regardless of whether your loan is approved or rejected.
Processing fees are charged for the administrative work involved in evaluating your application, verifying documents, and approving your loan—regardless of whether you eventually use the funds.
What Happens if IDBI Bank Home Loan Processing Fees Cheque Gets Bounced?
If your cheque for IDBI Bank home loan processing fee bounces, here’s what you need to know:
Immediate Consequences:
- Your application may be delayed or rejected until the payment issue is resolved.
- IDBI Bank (and your bank) may impose a cheque bounce penalty fee (as per their policy and RBI guidelines).
Steps to Resolve:
- Inform IDBI Bank about the bounced cheque and request an alternative payment method (e.g., NEFT/RTGS, demand draft, or online transfer).
- Clear the processing fee along with any additional charges levied due to the bounce.
- Ensure the original cheque is replaced or canceled to avoid further complications.
Suggested Read: Property Flipping in India
Is it Possible to Get a Home Loan with Zero Processing Fees?
Yes, it is possible to get a home loan with zero processing fees in India, though it depends on specific conditions, lenders, and timing. Here’s a detailed breakdown:
- Periodic Waivers: Many lenders (e.g., SBI, HDFC, LIC Housing Finance, PNB Housing Finance) occasionally waive processing fees as part of promotional campaigns to attract borrowers. These offers are often time-bound (e.g., festive seasons or year-end schemes).
- Targeted Schemes: Some lenders offer fee waivers to specific borrower segments, such as women applicants, government employees, or first-time homebuyers.
- Pradhan Mantri Awas Yojana (PMAY): Under this scheme, eligible first-time homebuyers (especially in EWS/LIG/MIG categories) may receive subsidies and fee concessions, including reduced or waived processing fees.
- State-Level Schemes: Some state governments or housing boards (e.g., MHADA in Maharashtra) collaborate with lenders to offer subsidized loans with minimal fees.
Suggested Read: How to Buy a House in Bangalore?
How is Home Loan Processing Fees Calculated?
Processing fees are typically calculated as a percentage of the loan amount , though some lenders charge a flat fee. The common range is 0.25% to 2% of the loan principal , depending on the lender and borrower profile.
For a ₹50 lakh loan with a 1% processing fee:
₹50,00,000 × 1% = ₹50,000 (processing fee).
Some lenders may cap the fee (e.g., maximum ₹75,000, even for larger loans).
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Factors Affecting IDBI Bank Home Loan Processing Fees
- Loan amount – higher principal means a larger percentage‑based fee (until it hits the cap).
- Lender’s pricing policy – flat fee, tiered slabs, or percentage rate decide the base charge.
- Borrower segment – women, government staff, or first‑time buyers often get concessional rates.
- Credit score – stronger scores give borrowers bargaining power for a lower fee.
- Property profile – under‑construction or non‑standard properties need extra due‑diligence, pushing costs up.
- Loan type – balance transfer or top‑up loans may carry higher or separate processing fees.
- Documentation load – multiple co‑applicants or complex income proofs increase verification expenses.
- Promotional window – festive or year‑end campaigns can drop the fee to zero.
- Government schemes – PMAY or state housing tie‑ups cap or waive processing charges.
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
The fee pays for credit‑bureau pulls, internal risk scoring, and the first round of underwriting. It is officially “non‑refundable” even if you finally walk away or the bank rejects the file, because the work is already done.
No. Banks declare upfront that the charge is independent of the sanction decision.
All service charges—processing, legal, valuation, foreclosure—are subject to 18 % GST, so a ₹10,000 processing fee balloons to ₹11,800.
They can. Many banks charge about 2 % of the outstanding principal on fixed‑rate loans if you close the loan with your own funds; however, some waive it after the first three years.
Common extras include legal‑opinion fees, technical‑valuation charges (to verify the property’s market value), stamp duty on the loan agreement, documentation charges, and, in some cases, a small franking fee if your state uses stamped papers.
Yes. When you shift your loan to another lender for a lower rate or take a top‑up, the new lender treats it like a new application. Processing fees may be lower than first‑time loans, but they’re still charged—factor them into your savings calculation.
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