There can be various hidden charges associated with an Engineers Home Loan, which may increase the overall cost of borrowing. Some of the common hidden charges are:
- Processing fee: This is charged by the lender for processing your home loan application. The processing fee is usually a percentage of the loan amount and can vary between lenders.
- Prepayment penalty: This is charged if you prepay your loan before the end of the loan tenure. However, prepayment penalties have been abolished by the RBI for floating rate home loans.
- Late payment fee: This is charged if you miss your EMI payment due date.
- Conversion fee: This is charged if you wish to switch from a fixed interest rate to a floating interest rate or vice versa.
- Legal and technical fee: This is charged for verifying the legal and technical aspects of the property.
- Stamp duty and registration charges: These are charges that are paid to the government for registering the property in your name.
It is important to read the loan agreement carefully and understand all the charges associated with the home loan to avoid any surprises later on.