If you’ve been eyeing a new home and thinking about taking out a home loan from SBI, 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.
SBI Home Loan Processing Fees Structure
| Home Product | Fee Structure | Min. Fee | Max. Fee |
|---|---|---|---|
| Home Loans – Regular | 0.35% of loan amount | ₹2,000 | ₹10,000 |
| Other Home‑Loan Products (NRI, Realty, Maxgain, CRE, Flexi‑pay, Nonsalaried, PAL, Triple Plus, Apon Ghar > ₹15 L) | 0.35% of loan amount | ₹2,000 | ₹10,000 |
| Home Top‑Up Loan | 0.35% of loan amount | ₹2,000 | ₹10,000 |
| Personal Loan against Property (P‑LAP) | 1.00% of loan amount | – | ₹50,000 |
| YONO Insta Home Top‑Up Loan (Digital) | Flat fee | ₹2,000 | ₹2,000 |
| Reverse Mortgage Loan | 0.50% of loan amount | ₹2,000 | ₹10,000 |
| Earnest Money Deposit (EMD) Scheme | 0.50% of deposit amount | – | – |
| Suraksha Loan | Nil | – | – |
| Privilege & Shaurya Home Loans | Nil | – | – |
| Apon Ghar (up to ₹15 L) | Nil | – | – |
| Kerala Govt Employees Home‑Loan Scheme | Nil | – | – |
Suggested Read: SBI Home Loan Interest Rates 2025
SBI Home Loan Other Charges
| Fee/Charge | Amount |
|---|---|
| Legal Opinion & Search Report | Actual expenses |
| Valuation Fee | Actual expenses |
| Stamp Duty | Percentage of project cost |
| Registration Charges | Percentage of project cost |
| CERSAI Registration | ₹100 + GST |
| Rate‑Switch Fee (to current EBLR rate) | ₹5,000 + GST |
| Safe Custody Charges | ₹1,000 + GST per quarter (or part thereof) |
| Conversion Fee (to EBLR from MCLR/Base/SBAR) | ₹1,000 + GST per account |
| EMI Non‑Payment Penalty | ₹250 + GST per missed EMI |
| Cheque Bounce Fee | ₹500 + GST per instrument |
| SI/NACH Failure Fee | ₹250 + GST per failed SI/NACH |
Suggested Read: SBI Home Loan Application Process
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 |
Suggested Read: SBI Home Loan CIBIL Score
Why Does SBI 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: SBI Home Loan Repayment Process
Is SBI Home Loan Processing Fees Refunded?
SBIs 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.
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When Does SBI Collect Home Loan Processing Fees?
SBI 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 SBI Home Loan Processing Fees Cheque Gets Bounced?
If your cheque for SBIs 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.
- SBI (and your bank) may impose a cheque bounce penalty fee (as per their policy and RBI guidelines).
Steps to Resolve:
- Inform SBI 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.
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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.
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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 SBI 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.
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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 meets the cost of credit appraisal, document checks, property valuation, legal due‑diligence, and regulatory compliance.
No. Once collected, Tata Capital retains the fee to cover completed administrative work; refunds occur only in the rare situations stated in your loan contract or by regulation.
You remit the one‑time, non‑refundable fee when you submit the loan application; SBI will not start appraisal without it.
Yes, SBI requires property insurance to cover risks like fire, earthquakes, and floods. The cost is borne by the borrower.
Yes, switching from one loan regime to another (e.g., from MCLR to EBLR) incurs a fee of ₹1,000 plus applicable GST.
The processing fee is collected at the time of documentation and is payable separately from the loan amount.
Yes, SBI offers full processing fee waivers on specific schemes such as Privilege Home Loan and Shaurya Home Loan.
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