If you’ve been eyeing a new home and thinking about taking out a home loan from PNB Housing Finance, 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.
PNB Housing Finance Home Loan Processing Fee
PNB Housing Finance charges a one-time, non-refundable processing fee to cover the administrative costs of reviewing your loan application. The fee varies based on the loan amount and is payable at the time of application submission.
| Description | Fee |
|---|---|
| Processing Fee | 1% of the loan applied for + GST |
Also Check: Home Loan Eligibility Checklist for PNB
PNB Housing Finance Home Loan Other Charges
When you take a home loan from PNB Housing Finance Limited, you may need to pay additional charges beyond the processing fee. Below is the accurate breakdown:
| Charge Type | Description |
|---|---|
| Late Payment Charges | 24% p.a on unpaid EMI for the delayed period |
| Legal Recovery Fees | Actuals |
| Repayment Schedule Fee | ₹500/- + GST will be charged |
| Documents Fee | ₹750/- + GST will be charged (After 6 months from 1st disbursement) |
| Loan Pre-closure Fee | ₹750/- + GST |
| Provisional Interest and Final Interest Paid Certificate Fee | ₹500/- + GST (On request made per instance otherwise 1 Final Interest and 2 Provisional sent through e-mail every year free of cost and no cost on self-download) |
| Copy of Property Documents Fee | ₹500/- + GST (If received through e-mail) ₹1000/- + GST (If printed copies < 50 pages) ₹1500/- + GST (If printed copies > 50 pages) |
| ROI Change Fee (Fixed to Floating) | 3% of POS + GST |
| ROI Change Fee (Floating to Floating with reduction in rate) | 0.5% of POS + GST |
| Fee for EMI payment in cash | ₹1000/- + GST |
| Custody Charges (For property documents not taken back after maturity) | ₹1000/- + GST p.m (after 1 month of Loan closure/maturity) |
| Document Retrieval Charges | ₹1000/- + GST |
| CERSAI Fees | ₹100/- + GST (If loans disbursed after January 31, 2016) ₹500/- + GST (If loans disbursed before January 31, 2016) |
| CERSAI Validation Fees | ₹50/- + GST |
| MODT/Registration of Charge | ₹500/- + GST |
PNB Housing Finance Home Loan Prepayment and Part-Payment Charges
| Loan Type | Prepayment Charge |
|---|---|
| Fixed-Rate Home Loans | NIL (If property is in the individual’s name and payment is from own funds) 3% of principal prepaid + GST (If property is in the individual’s name and payment is from a third party) |
| Floating-Rate Home Loans | No prepayment charges |
Suggested Read: How to Reduce Home Loan Processing Fees?
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 |
Also Read: Common Mistakes to Avoid in Loan Processing
Why Does PNB Housing Finance 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: Fixed vs Floating Interest Rate
Is PNB Housing Finance Home Loan Processing Fees Refunded?
PNB Housing Finance 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.
Also Read: Home Loan Prepayment vs Investment- 2025
When Does PNB Housing Finance Collect Home Loan Processing Fees?
PNB Housing Finance 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 PNB Housing Finance Home Loan Processing Fees Cheque Gets Bounced?
If your cheque for PNB Housing Finance’s 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.
- PNB Housing Finance (and your bank) may impose a cheque bounce penalty fee (as per their policy and RBI guidelines).
Steps to Resolve:
- Inform PNB Housing Finance 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: PNB Housing Finance Home Loan Customer Care
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 Check PNB Home Loan Application Status?
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).
Suggested Read: PNB Home Loan Repayment Options
Factors Affecting PNB Housing Finance 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
To qualify for a PNB housing finance home loan, a minimum credit score of 650 is required.
PNB charges a processing fee of 1% of the loan applied for plus GST.
Yes, PNB offers various home loan schemes, such as PNB Digi Home Loan, PNB Home Loan, PNB Gen-Next Home Loan Scheme, and PNB Max Saver, with waived processing fees and documentation charges until March 31, 2025.
For PMAY loans under the Economically Weaker Section (EWS) and Low Income Group (LIG), the processing fee is waived for loans up to ₹6 lakh. For loans beyond this amount, the standard processing fee applies.
The processing fee is typically collected after the loan application is approved, either at the time of sanction or disbursement.
Yes, PNB may charge other fees such as documentation charges, legal fees, and charges for services like property verification, subject to applicable GST.
PNB offers special home loan schemes for government employees with attractive interest rates and may have different processing fee structures. It’s advisable to contact PNB directly for specific details.
To apply for a home loan with waived processing fees, you can visit PNB’s official website or contact their customer service for information on current schemes and eligibility criteria.
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