SBI Home Loan Processing Fees: A Comprehensive Guide

The processing fees for State Bank of India (SBI) home loans vary based on several factors, including the type of loan, the amount borrowed, and ongoing promotions. As of 2023, the processing fee generally ranges from 0.35% to 1% of the loan amount. However, specific details and offers can change over time, so it's always best to check directly with SBI or their official website.

Understanding the SBI Home Loan Processing Fee

The SBI home loan processing fee is typically around 0.5% of the loan amount, plus GST. For a borrower with a home loan of 25 lakhs (about $35,000 USD), the processing fee can be calculated as follows:

Home Valuation: 4,000 INR Verification: 3,000 INR Government Stamp Duty: 12,000 INR CERSAI Registration: 181 INR Total Outgoing Expenses: 19,181 INR Property Insurance (Mandatory): 14,000 INR Life Insurance (Optional): varies based on individual needs

According to SBI's current offer, the processing fee might be nil, but this can vary. The current interest rate for an SBI home loan ranges from 6.90% to 8.20%, with the processing fee potentially being up to 10,000 INR, including service tax and a minimum of 2,000 INR.

Out-of-Pocket Expenses for Obtaining TIR/Valuation Report/CERSAI Registration

Besides the processing fee, borrowers may face additional out-of-pocket expenses for various services and registrations, such as:

Advocates' Fee for Title Investigation and Property Search Report: as needed Valuers' Fee for Valuation Report: as needed Stamp Duty for Loan Agreement and Mortgage: amount varies based on the locality and the amount of the loan Property Insurance Premium: mandatory for third-party protection CERSAI Registration Fee: Rs 50, with an additional GST up to Rs 5 lakh limit, plus Rs 100 for amounts above Rs 5 lakh

Alternative Options: Non-Banking Financial Companies (NBFCs)

There are alternative options available to borrowers who may find SBI's processing fee or other terms unattractive. Non-Banking Financial Companies (NBFCs) such as Bajaj Finserv can provide competitive rates and additional benefits:

Bajaj Finserv Home Loan: Provides the lowest interest rate of 8.95%, with a rate guarantee facility. Balance Transfer Scheme: Helps existing borrowers switch to a lower interest rate. If you are already a homeowner with an existing loan at a higher rate, switching to Bajaj Finserv can save you money. Pre-Approved Loan Offers: Bajaj Finserv offers pre-approved loan amounts for salaried individuals, doctors, and chartered accountants. Doorstep Delivery Services: Bajaj Finserv provides convenient doorstep services, including signing forms and other documentation. No Pre-Closure and Foreclosure Charges: Bajaj Finserv does not charge pre-closure or foreclosure fees. Part Payment and Maturity Options: You can clear the loan amount in one shot after the first EMI, or make part payments as needed.

Document Requirements for Balance Transfer with Bajaj Finserv

To transfer your loan to Bajaj Finserv, you will need the following documents:

Pan Card Aadhar Card Address Proof 3 Months Salary Slip 3 Months Bank Statement Sanction Letter Sale Deed

If you have any questions or require further assistance, feel free to contact Assistant Manager Prasad S at Bajaj Finserv. His contact information is provided below.

For more information or assistance, please contact:

Prasad S
Assistant Manager
Bajaj Finserv
Mob: 9945407520 / 8884294381