what was meant by home charges?
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Home Loan hidden charges are back in limelight as the banks are finding newer ways to make more money out of you. Home Loan hidden charges is a grey area & there are no clear cut guidelines regarding same. In India, transparency takes a back seat and regulatory bodies are also turning blind eye towards Home Loan hidden charges. I receive lot of complaints from my readers so i decided to write a post on this topic. Like the amount charged there is no standard definition of home loan hidden charges as banks keep moulding the definitions as per their convenience. Lets go though each of these Home Loan hidden charges
Conversion Fees
The most common among all Home Loan Hidden Charges is Conversion fees. It is the amount you need to pay to reduce your Rate of Interest during loan tenure e.g. You took home loan @ 12% i.e. Base Rate of 10% + 2% mark up. Now over a period of time bank reduced mark up for new customers to 0.25% & now offering home loans @ 10.25% but you are still paying 12%. Now you can decrease your ROI only by reducing mark up from 2% to 0.25%. For this bank will charge conversion fees. It varies from 0.5% to 1% of outstanding loan amount.
MODT Charges (Memorandum of Deposit of Title Deed)
Memorandum of Deposit of Title Deed is an undertaking by the borrower that he has deposited the title documents of the property with the bank at his own wish and will, in order to secure the financing obtained from the bank. Govt levy stamp duty on this document to register the same…Charges vary from state to state but is normally 0.1% to 0.2% of Home Loan amount. It is one of the most imp Home Loan hidden charges :)
Document Retrieval Charges
Document Retrieval Charges are the charges levied at the time of loan closure/pre-closure. It is basically a cost of transferring original documents from central document repository to the borrower. Normally all original documents received by banks are divided into 2 parts i.e. (a) Most Important documents like Sale Deeds, Sale Agreement etc and (b) General Documents like Khata, NOC from association etc. Most important documents are kept in safe custody at central repository and is being normally managed by 3rd parties. General Documents are kept at Loan Location.
Suppose you availed Home Loan in Chennai from HDFC Ltd. The central repository of HDFC is in Mumbai. All important documents will be shifted to Mumbai and general documents will be in Chennai. When the loan is closed, HDFC will charge document retrieval charges to transfer documents from Mumbai to Chennai. Best in class courier service is used for safe transfer. At the time of availing loan these charges are included in processing fees.
Administrative Charges
It should not be confused with Processing fees. Some banks charge administrative charges separately. These charges are levied to recover administrative cost of processing application. If we loosely define then processing fees refer to front end cost like DSA cost etc whereas administrative charges is levied for back-end processing of loan application. Bank might waive off processing fees but administrative charges will make up for same :)
Legal Fees
Banks like SBI don’t have in-house lawyers to validate legal status of the property. They hire external lawyers for this job. The fees of these lawyers is being recovered from customers under the head Legal Fees.
Valuation Fees / Inspection Fees
Before sanctioning the loan, physical inspection of the property is done to fix the property valuation. It is done to ascertain that bank is not over lending because in case of default, bank can recover their dues only by auctioning the property e.g. If property valuation is 1 Cr and bank approve loan of 1.2 Cr. In this case bank cannot recover the dues in case of default. Obviously these charges are recovered from customer.
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Conversion Fees
The most common among all Home Loan Hidden Charges is Conversion fees. It is the amount you need to pay to reduce your Rate of Interest during loan tenure e.g. You took home loan @ 12% i.e. Base Rate of 10% + 2% mark up. Now over a period of time bank reduced mark up for new customers to 0.25% & now offering home loans @ 10.25% but you are still paying 12%. Now you can decrease your ROI only by reducing mark up from 2% to 0.25%. For this bank will charge conversion fees. It varies from 0.5% to 1% of outstanding loan amount.
MODT Charges (Memorandum of Deposit of Title Deed)
Memorandum of Deposit of Title Deed is an undertaking by the borrower that he has deposited the title documents of the property with the bank at his own wish and will, in order to secure the financing obtained from the bank. Govt levy stamp duty on this document to register the same…Charges vary from state to state but is normally 0.1% to 0.2% of Home Loan amount. It is one of the most imp Home Loan hidden charges :)
Document Retrieval Charges
Document Retrieval Charges are the charges levied at the time of loan closure/pre-closure. It is basically a cost of transferring original documents from central document repository to the borrower. Normally all original documents received by banks are divided into 2 parts i.e. (a) Most Important documents like Sale Deeds, Sale Agreement etc and (b) General Documents like Khata, NOC from association etc. Most important documents are kept in safe custody at central repository and is being normally managed by 3rd parties. General Documents are kept at Loan Location.
Suppose you availed Home Loan in Chennai from HDFC Ltd. The central repository of HDFC is in Mumbai. All important documents will be shifted to Mumbai and general documents will be in Chennai. When the loan is closed, HDFC will charge document retrieval charges to transfer documents from Mumbai to Chennai. Best in class courier service is used for safe transfer. At the time of availing loan these charges are included in processing fees.
Administrative Charges
It should not be confused with Processing fees. Some banks charge administrative charges separately. These charges are levied to recover administrative cost of processing application. If we loosely define then processing fees refer to front end cost like DSA cost etc whereas administrative charges is levied for back-end processing of loan application. Bank might waive off processing fees but administrative charges will make up for same :)
Legal Fees
Banks like SBI don’t have in-house lawyers to validate legal status of the property. They hire external lawyers for this job. The fees of these lawyers is being recovered from customers under the head Legal Fees.
Valuation Fees / Inspection Fees
Before sanctioning the loan, physical inspection of the property is done to fix the property valuation. It is done to ascertain that bank is not over lending because in case of default, bank can recover their dues only by auctioning the property e.g. If property valuation is 1 Cr and bank approve loan of 1.2 Cr. In this case bank cannot recover the dues in case of default. Obviously these charges are recovered from customer.
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If the funeral home’s only role is to receive remains
If the funeral home’s only role is to forward remains
If you are planning a direct burial
If you are planning a direct cremation.
is the types of home charges
PLZ MARK MY ANSWER BRAINLEAST :)SOFIA(:
If the funeral home’s only role is to forward remains
If you are planning a direct burial
If you are planning a direct cremation.
is the types of home charges
PLZ MARK MY ANSWER BRAINLEAST :)SOFIA(:
plz mark my answer as brainleast
sachin plz
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