Expenses that are not covered in a home loan


There are various out-of-pocket expenses associated with home loans that you need to consider when buying a home. Banks provide 80-90% of the property value for a home loan. The balance amount, known as the down payment, has to be paid by you at the time of booking the property. In addition to this, there are other expenses. Read below to know what other expenses are not covered in your home loan.

You can use your gold jewellery to cover these expenses. You can get a gold loan from the comfort of your home without the risk of carrying your gold outdoors unsafely with our Gold Loan from Home. We are a SBU of Muthoot FinCorp, one of the most trusted NBFCs in India. Click here to learn how to book an appointment for our Gold Loan from Home.

Expenses that are not included in a home loan Down Payment The down payment is the amount you pay in advance to the property seller. The amount depends on how much the home loan covers the property value. A higher down payment can give you the advantages of lower EMIs, quick loan approval, lower interest rates, and faster repayment. Most banks and NBFCs charge a one-time processing or administrative fee, which is an out-of-pocket expense. The processing fee can be around 1% of the loan amount, but it becomes significant in case of a higher loan amount combined with GST. Some banks charge you a non-refundable login fee which is to be paid upfront once your application is accepted. Insurance coverage against physical damage to your home is mandatory for certain lenders.

You can get our Gold Loan from Home to cover this expense with minimum gold loan documents and within 30 minutes*. Click here to learn the step-by-step process of applying for a Gold Loan from Home.

Expenses related to documents Document charges include CIBIL report fees, stamping charges for any legal document between you and the bank, and any NOC or NDC, statements, or certificate issuance charges that are not covered in a home loan.

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Expenses related to Government fees Legal Fee: The lender's legal team will verify the property and documents. You will have to bear the legal charges for creating the home loan agreements between you, the builder, and the bank.

Valuation Fee: Property evaluation is a key element in deciding the home loan amount. The valuation fee is also an out-of-pocket expense that a home loan does not cover.

MODT Charges: A Memorandum of Deposit of Title Deed is an undertaking that you have submitted the title deed of your property to the bank as collateral. Government levies a stamp duty based on the market value of the property.

The terminologies and combination of these charges may vary across banks. You must read the loan agreement terms & conditions to understand the charges applicable to you. However, all these expenses are also not included in the home loan amount and can come out to be quite significant that you can cover with our Gold Loan from Home.

Interior Designing You can get a home loan to buy a property but with the modern aesthetic and taste decorating and designing your new home can incur a significant dent in your pocket. You can cover these expenses with your gold jewellery by getting a Gold Loan from Home against it

We offer one of the highest LTV ratios and a 0% processing fee, so you can get the maximum loan amount for your gold jewellery with our Gold Loan from Home. It can also cover the expenses of interior decoration, appliances, and registration charges for utilities. You get the lowest gold loan interest rate and flexible repayment options with our Gold Loan from Home which will help you repay your loan on time so you can keep reusing your gold jewellery to cover other expenses. Head to the Muthoot FinCorp ONE app to book an appointment for a Gold Loan from Home. Click here to learn how to book an appointment.

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