I have questions regarding Home Loan that I am taking from SBI. When we(my spouse and I) initially went to the bank, the SBI, the NRI Branch manager told us about all the procedures for an NRI Home Loan. At that time the manager told us that there would not be any charges except for property search and valuation which were Rs 4000/- and Rs 1720/- respectively.

When I went to the bank the following week they gave me a paper which said I would have to take Home Loan Insurance and told me I had to sign that paper, which I did.

After a few days, we had signed all required papers and given them all to the bank. After submitting all the documents for loan sanctioning, the bank has now charged us more money which they had never told us earlier in spite of us asking them again and again about any hidden or required charges.

The Loan amount I have requested is Rs 98 Lakhs.

The breakdown of charges is as follows:

  1. Advocate Fee- Rs 3000/-

  2. Advocate Fee- Rs 4000/-

  3. Values Fee- Rs 1720/-

  4. Search Of Property Fee - Rs 3000/-

  5. Customer Loan Agreement Chrages Rs 19,800/-

  6. Franking Charges for Agreement Rs 665/-

The charges total of Rs 32,185 which is 4 times more that what bank initially told us.

Are all these charges required by SBI?

Are all these charges imposed by other banks too?

Is home loan insurance mandatory? If not then what are policies of other private banks like ICICI or HDFC or Axis?

Any links or information from RBI that explains the home loan procedure will be much appreciated.

1 Answer 1


Generally the fees are anywhere between 0.5 and 2%.

Different banks have different fees. Generally these days competition ensures that the fees are nil.

It is disappointing that you were misled. File a written/email complaint. Generally the response to such things is good.

Home loan insurance is not mandatory by RBI. Quite a few banks ask for it as it's their policy. In the case of SBI it's more about cross selling their products.

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