Posted on 16-04-2021 by Admin
If you apply for a home loan or business loan then you need to be careful. Apply only for the amount of money you need. Because banks and non-banking financial companies i.e. NBFC charge you processing fees on the loan that the loan has been sanctioned to you. Even if you take the loan amount less than the sanctioned amount, you will have to pay the processing fee only on the loan sanctioned.
It is generally seen that people do not pay much attention to business and home loans or loans of any kind. People get loans sanctioned excessively. For example, if you applied for a loan of 10 lakh rupees and you took a loan of 8 lakh rupees, then you would incur processing fees and other charges on 10 lakh rupees. However, if you want, you can also take a loan of 10 lakh.
Banking experts say that the amount that has been sanctioned for your loan, we block the amount for you. That is, if you want in future also, you can take the amount that you have applied. So we charge processing fees on the same amount. Whether it is for a home loan, or a business loan, it applies to all types of loans.
In such a situation, if you apply for a home loan or business loan in advance, then first understand that how much money you really need. After this, apply for the same money. According to a Canara Bank official, this is not a wrong rule. Because our money gets stuck as much as you have applied. If you want, you can take the remaining money even further.
Bank of India Chief Financial Officer (CFO) K.V. Raghavendra says that the processing fee charged is the link to the amount of money that the bank has approved to give to you. Even if you have taken less loan from the bank, the fees will be the same. However, if you want to be charged processing fees on the same amount that you have taken, then you will have to apply again for a new loan and only then your processing fee can be reduced.
All banks and NBFCs in the country, including Bank of Baroda, ICICI Bank, HDFC Limited, have likewise linked processing fees with sanctioned loans. Bank of Baroda also said that it is true that processing fees are charged on the same amount that has been sanctioned. While the loan you get does not make sense.