Additional charges
 
i. Currently, these loans come with an interest rate of between 13 to 14% per annum, which is cheaper than other options like personal loans.

ii. The processing fee is approximately 1%, which can be negotiated.

iii. The property valuation fee ranges between Rs 500 and Rs 2,000.

iv. The legal fee (including document verification and title check) is around Rs 1,500 to Rs 2,000.

v. If your house isn't insured already then the bank will insist on an insurance policy as well. For the purpose of premium calculation, the value of your home structure is assessed as per the area of your home multiplied by the rate of construction per square feet, as on the date of taking the policy.

For example, if your home is 1,000 square feet and the construction rate per square foot is Rs 800, then the sum insured for your home’s building structure is Rs 8 lakhs. A home insurance policy that covers the structure of a house for Rs 8 lakhs would come at a premium of around Rs 700 per year.