ICICI Bank Home Loan Processing Charges

ICICI Bank charges a processing fee for home loans. This fee helps cover the cost of processing your loan application. Learn about the details of ICICI Bank Home Loan Processing Charges.

ICICI Bank Home Loan Processing Charges: ICICI Bank charges a processing fee for home loans, ranging from 0.50% to 2.00% of the loan amount or at least ₹3,000, whichever is higher. This fee is non-refundable and applies even if the loan is approved or rejected. An 18% Goods and Services Tax (GST) is added to the fee. For applicants in cities like Mumbai, Delhi, and Bangalore, the fee is ₹2,000.

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The processing fee covers costs for evaluating and processing the loan. ICICI Bank may also charge extra fees for services like cheque dishonour (₹500 per transaction) or prepayment (up to 4% of the loan balance for fixed-rate loans), depending on certain conditions.

ICICI Bank Home Loan Processing Charges Overview

ICICI Bank’s home loan processing charges cover the costs of evaluating loan applications. The fee usually ranges from 0.50% to 2.00% of the loan amount, with a minimum charge of ₹3,000. This fee is non-refundable, meaning it applies even if the loan is approved or rejected.

• If customers submit all required documents within seven days, the processing fee is reduced to ₹2,999 plus GST. 
• An 18% Goods and Services Tax (GST) is added to the fee. 
• These charges cover operational expenses like property valuation and legal checks.

ICICI Bank may have different fees for types of loans such as pre-approved home loans or balance transfers. Understanding these charges helps borrowers plan their home loan costs.

Breakdown of ICICI Bank Home Loan Processing Charges and Other Costs

ICICI Bank's home loan processing fees and related costs are clearly outlined for borrowers. Here's a detailed breakdown of processing fees:

• Percentage of Loan Amount: The fee ranges from 0.50% to 2.00% of the loan amount, with a minimum charge of ₹3,000. In major cities like Mumbai, Delhi, and Bangalore, the minimum fee is ₹2,000.
• GST: An 18% GST is added to the processing fee.

Legal and Technical Charges

• Legal Verification: Charges for legal checks range from 0.25% to ₹5,000, depending on the loan amount and property valuation.
• Technical Evaluation: Similar charges apply for property valuation to ensure an accurate assessment of the property's value.

Prepayment and Foreclosure Fees

• Prepayment Charges: ICICI Bank waives prepayment penalties for floating-rate loans. However, for fixed-rate loans, a charge of 2% on the outstanding principal applies if the loan is fully repaid.
• Foreclosure Charges: For non-individual borrowers or fixed-rate loans, foreclosure charges can be as high as 4% of the outstanding amount.

Additional Charges

• Late Payment Fees: A 2% per month fee is charged on overdue amounts.
• Document Retrieval and Other Fees: Charges for document retrieval, cheque bounce, and other administrative tasks typically range from ₹100 to ₹500.

Comparison with Processing Fees of Other Banks

When comparing the processing fees for home loans from ICICI Bank with other major banks like SBI and HDFC, here are the key differences:

ICICI Bank vs. SBI Home Loan Fees

When comparing home loan fees between ICICI Bank and SBI, several factors stand out. ICICI Bank charges a processing fee of 0.50% to 2.00% of the loan amount, with a minimum of ₹3,000 plus GST. SBI charges a lower processing fee of 0.35%, with a minimum of ₹2,000 and a maximum of ₹10,000, plus GST. 

SBI also offers lower interest rates starting at 8.40%, while ICICI’s starts at 9.25%. Both banks offer loan tenures of up to 30 years.

ICICI Bank

• Processing Fee: 0.50% to 2.00% of the loan amount, with a minimum of ₹3,000 and a maximum of ₹5,000. An 18% GST is added.
• Prepayment Charges: 2% for fixed-rate loans.

State Bank of India (SBI)

• Processing Fee: 0.35% of the loan amount, with a minimum of ₹2,000 and a maximum of ₹10,000, plus GST.
• Prepayment Charges: No charges for floating-rate home loans.

ICICI Bank vs. HDFC Bank Fees

When comparing home loan fees between ICICI Bank and HDFC Bank, several key aspects stand out. Both banks charge a processing fee of up to 0.50% of the loan amount along with GST. However, HDFC Bank offers more flexibility, with fees starting at 0.50% but potentially reaching up to 1% depending on the loan type. 

In terms of interest rates, HDFC Bank offers lower starting rates at 8.75%, while ICICI’s starts at 9.25%. Both banks provide similar maximum loan amounts of up to ₹50 crore, but HDFC Bank offers a higher loan-to-value ratio of up to 90%, compared to ICICI’s 80%.

Tips to Reduce Home Loan Processing Charges

When applying for a home loan, processing charges can add to the cost. Here are some ways to reduce these fees:

Negotiating Processing Fees

• Shop Around: Compare offers from different banks. Some may waive or reduce fees during special offers. For example, SBI charges 0.35% (min ₹2,000, max ₹10,000), while HDFC charges up to 0.50% or ₹3,300, whichever is higher.
• Use Your Credit Score: A good credit score can help you get lower fees or even a fee waiver.
• Request a Fee Breakdown: Ask for a detailed list of processing fees. This helps you spot unnecessary charges.
• Negotiate with Loyalty: If you're an existing customer with a good record, ask for reduced fees or special offers.

Timing Your Application

• Choose the Right Time: Apply near the end of a bank’s monthly or quarterly target period. Lenders may be more willing to negotiate.
• Consider Pre-Approved Loans: If you have a good financial history, pre-approved loans may come with lower fees.
• Evaluate Loan Amounts and Property Types: Larger loans and complex properties usually have higher processing fees.
• Look for Bundled Packages: Some banks offer discounted packages that combine various charges.

ICICI Bank's home loan processing charges vary from 0.50% to 2.00% of the loan amount, with a minimum charge of ₹3,000. These fees cover various services such as loan evaluation, property valuation, and legal checks. Additional fees may apply for late payments, prepayments, and document retrieval. Compared to other banks like SBI and HDFC, ICICI Bank's fees are slightly higher, but borrowers can reduce these costs through negotiation, good credit scores, and timing their applications well. Understanding these fees can help borrowers plan their home loan costs more effectively.