Loan Against Property Fees & charges

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What are the processing fees for a loan against property?

The processing fee is a one-time non-refundable fee charged for the services provided to process the loan. It is payable at the time of application, and most banks in India charge 1-2% of the total loan amount as processing fees.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

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What are the documentation charges for a loan against property?

A loan applicant has to pay the documentation charges while submitting his paperwork for the loan application. At Kotak Mahindra Bank, we charge INR 10,000/- + GST + Statutory dues in documentation charges. The interest rate can be another decisive factor while choosing the right LAP loan.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

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What are the charges I need to pay to foreclose my loan against property?

The 2014 RBI Circular mandates that no foreclosure charges will be levied on individual borrowers seeking floating loan interest rates. However, for individual borrowers who have loans at fixed interest rates or joint borrowers with floating rates, there will be foreclosure charges applicable if the loan is retired before its schedule.

You can refer to the table above to check out our charges.

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What is an overdraft facility for a mortgage loan?

There are two types of loans against property available with Kotak Mahindra Bank: Overdraft and Term loan.

In a term loan, you get a specific amount that you will have to pay at specific time intervals and a fixed interest rate. In the overdraft facility, one gets the option to choose when and if they want to withdraw. You only pay interest on the amount you withdraw, and that too, if repaid in 24 hours, attracts 0 interest. Moreover, with an overdraft facility, one can pay off their loan partly or in full beforehand without attracting additional charges.