HDFC home loan processing charges?

POSTED BY vijay ON August 27, 2013 10:02 am COMMENTS (10)


I have a feeling HDFC (or some of its staff) is involved in illeglal/corrput activities at least as far as its home loan processing is concerned. 

Although not an exorbitant amount, we’ve already paid them much more than the intial estimates they provided as processing charges. Even on repeated requests, they just don’t provide any break-up or accountability but only give vague replies. I wish there was some standardization and rigorous protocols to go by the book. 

Three of their staff members in the B’lore Kasturba Rd. branch have really tested our patience with misleading and inconsistent information. After gathering more information and discovering that one of them had taken at least Rs.2000 more than was necessary, I threatened to file charges against him. Couple days later I am informed he doesn’t work there anymore!

Does anyone else have any experience with the staff members in that branch? Is there a way to get them to just do their job honestly without messing things up?







10 replies on this article “HDFC home loan processing charges?”

  1. D lumar says:

    I have availed 10 lakh top up loan from SBH .he has charged processing charge 5500, legal charge 3000, valuation charge 7600, EM charge 2000 and stamping total 22500.whether it is justified. Or I should go for legal action against bank manager

    1. They must have told you all this in the start !

  2. Dear Vijay, no problem. We all are here to help each other. 🙂



  3. vijay says:


    Thank you for the reply. I did read it and acting on it. Seemed to me Manish had some inputs. If that is the case, I’d love to learn his opinion as well. No offense intended, but the opportunity to interact directly with experts like Manish is the primary reason most of us are here on this portal/forum. I like the fact that he backs his ideas with some sound analysis instead of doling out a handout of do’s-and-don’ts.

    Apologies if I’ve misspoken. Didn’t intend to.


    1. Vijay

      No one is suppose to take any money on SELF through cheque . Tell the guy you are talking to HDFC on this and also complaining to banking ombudsman about it . Also in future, always remember to questions things . How can you give a cheque on SELF . NEver do it . What if amount is changed somehow and someone takes 20,000 instead of 2,000 .


      PS : Ashal is bigger expert 🙂 . I consult him often personally !

      1. vijay says:

        Thanks Manish for the reply. Being a small amount, we didn’t bother taking the time to check and question on these things. Now that we are more focused and disciplined about various out- and in- flows (thanks in large part to JI), things are getting there…

        Thanks again,

  4. Dear Vijay, I already told you to file a written complaint with HDFC.



  5. vijay says:

    Thanks Manish and Ashal. This is what we have so far –

    We booked the apartment and financed most of it ourselves except for 11Lakhs. We assumed it’d help us build a credit history in India since we pretty much had none.

    According to sanction letter, we need to pay 0.5% + tax as processing charges and 0.1% (with no tax clause) as stamp duty charges. Furthermore, they invoked some corporate discount that allowed for 50% rebate on the processing fees. The exact wording on the sanction letter reads:

    Processing Fee payable Rs. 3090
    Processing Fee received Rs. 6180

    At the end of the day, the net check value we gave them stands at Rs.12,261. When inquired, they said the 50% of the processing fee will be adjusted in the EMIs.

    All the checks were in favor of HDFC except for one that was ‘self’ for an amount of Rs.3,700.

    Things didn’t seem to add up. When I followed up (a little persistently) with one of the managers there, he finally confessed the field-officer/person took extra money of ~Rs.2000 that they need to reimburse us.

    I now think they (some of the HDFC staff) do this with most of their customers.

  6. How much did they charge ? Its generally 0.5% of the agreement value + Stamp duty @0.2% of the agreement value + service tax.

    When you get your loan sanction letter, you have all these mentioned. Plus you also have to give these only in the name of HDFC and not on any personal name ?

    Revert !


  7. Dear Vijay, please file a written complaint to HDFC.



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