If you’ve been eyeing a new home and thinking about taking out a loan from ICICI Bank, you’re likely wondering about the costs involved. It’s not just about the interest rate—processing fees and other charges can make a real difference. A clear idea of these expenses can help you budget wisely and avoid any last-minute surprises.
ICICI Bank Home Loan Home Loan Processing Fees Structure
Understand the processing fees involved so you can factor them into your overall cost when opting for a home loan.
| Description | Fee |
|---|---|
| Processing Fee Range | Up to 2% of the loan amount |
| GST Applicable | As per government regulations |
Check Out: Home loan eligibility checklist for ICICI
ICICI Bank Home Loan Additional Fees and Charges
Be aware of any extra charges, such as prepayment penalties or overdue fees, that may apply to your home loan.
| Charge Type | Description |
|---|---|
| Late Payment Charges | 5% per annum on the overdue amount from the due date until payment. |
| Administrative & Legal Fees | 0.25% of the facility amount or ₹5,000, whichever is lower, for legal verification and documentation. |
| CERSAI Fees | ₹100 non-refundable charge for security registration. |
| Stamp Duty and Registration | Stamp duty and charges apply based on state laws. |
| Prepayment Charges | 2% on fixed-rate home loans if repaid early. No charges for floating-rate loans. |
| Conversion Charges | ₹3,000 for floating to fixed conversion, 2% for fixed to floating. |
| Document Retrieval Charges | ₹500 for retrieving loan or property documents. |
Check Out: ICICI Home Loan Interest Rate Calculator
ICICI Bank Home Loan Prepayment and Part-Payment Charges
ICICI Bank offers flexible prepayment options for home loans, but it’s important to understand the associated charges if you have a fixed-rate loan. Here’s a focused look at prepayment charges for home loans:
| Loan Type | Prepayment Charge |
|---|---|
| Fixed-Rate Home Loans | 2% on the prepaid amount if payments were made in the last year |
| Adjustable-Rate Home Loans | No prepayment charges regardless of loan use |
Also Read: ICICI Bank Home Loan Prepayment Charges
Compare Home Loan Processing Fees of Top Banks and HFCs
| Banks/ NBFCs | Processing Fees |
|---|---|
| SBI | 0.35% of the loan amount + GST Minimum: ₹2,000 + GST Maximum: ₹10,000 + GST |
| HDFC | Up to 0.50% of the loan amount or ₹3300 (whichever is higher) |
| LIC Housing Finance | 0.25% of the loan amount Minimum: ₹ 5,000 Maximum: ₹50,000 |
| ICICI Bank | Up to 2% of the loan amount |
| Bank of Baroda | Up to 0.40% of the home loan |
| Bank of India | 0.25% of loan amount (Min ₹2,500 – Max ₹20,000) |
| Canara Bank | 0.50% (Min Rs.1500/-+GST and Max. Rs.10,000/-) |
| Bajaj Housing Finance | Up to 4% of the loan amount |
| PNB Housing Finance | 0.35% of the loan amount Min: Rs. 2,500/Max: Rs. 15,000/ |
| IDBI Bank | 0.50% of loan amount |
| Axis Bank | 1% of the loan amount, minimum Rs. 10,000; Rs. 5,000 +GST upfront |
Why Does ICICI Bank Take Processing Fees?
- Administrative Costs: Covers application processing, documentation, and verification efforts.
- Legal & Technical Checks: Funds property valuation, legal due diligence, and technical assessments.
- Risk Assessment: Supports credit checks, eligibility evaluations, and loan structuring.
- Compliance & Regulation: Ensures adherence to banking norms and regulatory requirements.
Suggested Read: Upfront Payment vs. Home Loan
Is ICICI Bank Home Loan Processing Fees Refunded?
ICICI Bank’s home loan processing fees are generally non-refundable and are retained by the lender regardless of whether the loan is closed early, rejected post-approval, or repaid prematurely.
These fees cover administrative expenses, including documentation, verification, legal due diligence, and technical assessments conducted during the loan setup.
Refunds are rare and apply only under specific conditions explicitly outlined in the loan agreement or mandated by regulatory guidelines.
Suggested Read: Plot Loan vs. Home Loan
When Does ICICI Bank Collect Home Loan Processing Fees?
ICICI Bank collects a one-time, non-refundable processing fee when you submit your home loan application. This fee covers the cost of evaluating your application, including verifying your eligibility and assessing your financial profile.
Am I Still Liable to Pay The Processing Fees if My Home Loan is Sanctioned But I Don’t Avail It?
Yes, you are typically liable to pay the processing fee regardless of whether your loan is approved or rejected.
Processing fees are charged for the administrative work involved in evaluating your application, verifying documents, and approving your loan—regardless of whether you eventually use the funds.
What Happens if ICICI Bank Home Loan Processing Fees Cheque Gets Bounced?
If your cheque for ICICI Bank home loan processing fee bounces, here’s what you need to know:
Immediate Consequences:
- Your application may be delayed or rejected until the payment issue is resolved.
- ICICI Bank (and your bank) may impose a cheque bounce penalty fee (as per their policy and RBI guidelines).
Steps to Resolve:
- Inform ICICI Bank about the bounced cheque and request an alternative payment method (e.g., NEFT/RTGS, demand draft, or online transfer).
- Clear the processing fee along with any additional charges levied due to the bounce.
- Ensure the original cheque is replaced or canceled to avoid further complications.
Suggested Read: Property Flipping in India
Is it Possible to Get a Home Loan with Zero Processing Fees?
Yes, it is possible to get a home loan with zero processing fees in India, though it depends on specific conditions, lenders, and timing. Here’s a detailed breakdown:
- Periodic Waivers: Many lenders (e.g., SBI, HDFC, LIC Housing Finance, PNB Housing Finance) occasionally waive processing fees as part of promotional campaigns to attract borrowers. These offers are often time-bound (e.g., festive seasons or year-end schemes).
- Targeted Schemes: Some lenders offer fee waivers to specific borrower segments, such as women applicants, government employees, or first-time homebuyers.
- Pradhan Mantri Awas Yojana (PMAY): Under this scheme, eligible first-time homebuyers (especially in EWS/LIG/MIG categories) may receive subsidies and fee concessions, including reduced or waived processing fees.
- State-Level Schemes: Some state governments or housing boards (e.g., MHADA in Maharashtra) collaborate with lenders to offer subsidized loans with minimal fees.
Suggested Read: How to Buy a House in Bangalore?
How is Home Loan Processing Fees Calculated?
Processing fees are typically calculated as a percentage of the loan amount , though some lenders charge a flat fee. The common range is 0.25% to 2% of the loan principal , depending on the lender and borrower profile.
For a ₹50 lakh loan with a 1% processing fee:
₹50,00,000 × 1% = ₹50,000 (processing fee).
Some lenders may cap the fee (e.g., maximum ₹75,000, even for larger loans).
Suggested Read: Inheritance Rights on Ancestral Property
Factors Affecting ICICI Bank Home Loan Processing Fees
- Loan amount – higher principal means a larger percentage‑based fee (until it hits the cap).
- Lender’s pricing policy – flat fee, tiered slabs, or percentage rate decide the base charge.
- Borrower segment – women, government staff, or first‑time buyers often get concessional rates.
- Credit score – stronger scores give borrowers bargaining power for a lower fee.
- Property profile – under‑construction or non‑standard properties need extra due‑diligence, pushing costs up.
- Loan type – balance transfer or top‑up loans may carry higher or separate processing fees.
- Documentation load – multiple co‑applicants or complex income proofs increase verification expenses.
- Promotional window – festive or year‑end campaigns can drop the fee to zero.
- Government schemes – PMAY or state housing tie‑ups cap or waive processing charges.
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
Yes, ICICI Bank charges a processing fee of up to 2% of the loan amount. This one-time, non-refundable fee covers the cost of evaluating the loan application, regardless of whether the loan is approved or not.
ICICI Bank offers fixed home loan interest rates based on tenure. Rates range from 8.90% to 9.15% for 37 months and 11.00% to 12.05% for 60 or 120 months. Full-term fixed rates are 11.15% to 11.45%.
The borrower pays the loan processing fee. Lenders charge this one-time fee to cover the cost of reviewing and approving the loan application. It is part of the total expense of securing a loan.
Yes, ICICI Bank offers home loans with competitive rates, quick approvals, and flexible repayment options. You can get loans up to ₹5 crore with tenures of up to 30 years. Many borrowers receive approval within a month.
Yes, ICICI Bank holds a CRISIL AAA/Stable rating, showing strong financial stability. It has a solid market position, good capital levels, and a strong resource base. However, asset quality remains an important factor to watch.
ICICI Bank is recognised as one of the best workplaces in India across industries. It has also been ranked as the top employer in the BFSI sector multiple times, highlighting its strong work culture and employee-friendly policies.
ICICI Bank has higher interest income and net interest margin due to strong loan growth. Axis Bank’s net interest income has improved with better asset quality and wider interest spreads. Both banks offer competitive services based on different financial strengths.
ICICI Bank faces risks like credit, market, liquidity, operational, and compliance risks. It also manages legal, technological, and reputation risks. Additionally, the bank considers environmental, social, and governance risks while ensuring financial stability.
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