When you compare home loans, you compare interest rates. But the rate is only part of what your loan actually costs. A long list of charges — most never mentioned in the advertised offer — can add lakhs to a Gurgaon home loan.
The charges banks don't put in the ad
- Processing fee — 0.25%–1% of the loan amount plus GST. On high-ticket Gurgaon loans, this alone can be ₹50,000–₹1,00,000+.
- Legal and technical charges — the bank verifies the property's title and physically valuates it, and passes the cost to you.
- Login / administrative fee — a smaller upfront fee charged when you submit your application, sometimes non-refundable.
- CERSAI charges — a small statutory charge for registering the security interest.
- MOD (Memorandum of Deposit) charges — stamp duty on the mortgage deed, which varies by state.
- Documentation and stamping charges — for preparing and stamping loan agreements.
- Bundled insurance — many lenders attach a loan-protection insurance policy and fold the premium into your loan, inflating your EMI.
Charges that bite later
- Prepayment / foreclosure charges — floating-rate home loans to individuals generally can't carry prepayment penalties, but always confirm.
- Late payment charges and EMI bounce fees.
- Conversion / switch fee — if you later want to move to a lower rate with the same bank, they may charge for it.
How to protect yourself
Always ask for the all-in cost, not just the interest rate. Request a written breakdown of every charge before signing. Specifically ask whether any insurance is being bundled into the loan — and whether it's truly mandatory.
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