home equity cashout loan rates

Like other NRI home loans home loans also have different fees, interest and costs associated with them. Fees and charges on the loan increases the cost and on the basis of the first of its budget.

Processing fees
Banks and financial institutions often charge an administration fee, which is sometimes called loan administration fee for NRI home. This fee must be submittedwith the application and is generally non-refundable. The processing fee is the first thing a home loan borrower will pay to the bank or HFC.

Usually the processing fee is around 0.5% to 1% of the loan amount. A good thing to ask the lender is whether the processing fee includes the service tax or not. Given the high service tax rates in India, a processing fee, which includes the service tax, comes as a pleasant surprise. Here are few examples:

SBI charges a processing fee of 0.5% (inclusive of service tax) for its NRI home loan. ICICI Bank charges 1% of the loan amount in INR- Indian rupees as the processing or administrative fees. A service tax: 12.36% is also levied on this fee.
Interest Rates on NRI Home Loans

The interest rates on NRI home loans are on the higher side as compared to a regular home loan in India Depending on the lender, loan tenure, loan amount and the assessment a lender makes about the loan applicant, the interest rates on NRI home loans can vary from 11.5 % to 16%.

In addition to the processing fees there are various other charges that can be levied on the NRI home loan Some of these are listed below:

Valuation Charges:

These are charged by the lender to get the property valued.

Late payment Penalty:

It is generally subject to about 2% of the minimum and maximum.

Prepaid Amount:

If you want your loan to be paid to NRA, bank charges require prepayment basis. The rates vary from lender to lender in advance. Usually around 2%, most lenders do not charge upfront fees if they determine that the borrower has prepaid the loan money of its own. However, refinancing a loandefinitely attract prepayment charges.

Cheque Bounce Charges:

As evident it is charged when a cheque bounces.

Cheque Swap Charges:

Levied when, the borrower wants to swap checks, which he initially gave to the bank with new ones.

Document retrieval charges:

It is charged when the borrower wants to get some documents pertaining to the NRI home loan from the lender.

In addition to the above charges there are stamp duties to be paid, which are charged as per the rates prevalent in the state where the property is located.