Your lender will charge you a fee to get the loan proposal on roll. This fee is called the 'processing fee'. This fee varies from bank to bank, but is usually around 0.5 per cent to one per cent of the total housing loan amount.
Paying the fee doesn't mean that you will get the loan, but this is the fee to get the lender to even 'take a look' at your application. No matter what the bank representative informs you; the processing fee is 'NON-REFUNDABLE'.
Don't trust any verbal promises about not encashing the cheque if the sanction is not done or is not as per the promised terms. Get all such promises in writing. This means that if your loan application is rejected or is sanctioned for a lower amount or at a higher rate than promised, you cannot claim the processing fee back.
Also see: Student loan ready reckoner
Advertisement
