Home loans have played a big role in fulfilling the dream of buying a house for people in today's time. If you have 20 percent of the market value of the house, then you can take 80% as a home loan from the bank and buy a house. But many types of charges are also associated with home loans, which the bank charges you in exchange for providing all the services of home loan. But customers are not informed about all these charges in advance. If you are thinking of taking a home loan for the first time, then know about such 6 hidden charges of home loan here so that you do not face any problem later.

Many banks charge you an application fee while applying for a loan, it is also called login charge. It varies from bank to bank. Usually this fee can be between Rs 2,500 to Rs 6,500. After getting the loan approval, it is adjusted in the processing fee of your loan.

But if your loan is not approved, the bank does not refund it.

If you have taken a floating rate home loan, then there is generally no charge on prepayment, but if you have taken a home loan on a fixed rate and you want to finish it completely before the tenure is over, then the bank can charge you a foreclosure charge in return. However, banks have some rules regarding this.

If you convert a floating rate loan into a fixed rate loan or a fixed rate loan into a floating rate loan, then the bank charges you a conversion charge in return. This is also called a switching charge. Usually it can be from 0.25 percent to 3 percent of the remaining loan amount.

If you do not pay after taking a loan from the bank, the bank declares you a defaulter.

In such a situation, the bank takes action against the customer to recover the money. The money spent in this process is recovered from the customer. This is called recovery charge.

A team of experts from the bank comes to assess the value of the property for which you are taking a home loan. These experts evaluate the property on many parameters like statutory approval, layout approval, building specification, construction norms etc. Banks charge you a fee for this inspection work. Many banks include this fee in the processing fee, while some banks charge it separately.

Banks appoint legal experts to get information whether there is any legal problem in your property. These experts check the title deed, history of property ownership and depreciation, no objection certificate (NOC), occupancy certificate etc.

After this, those experts give their final opinion to the bank whether to give the loan or not. In return for these services, experts are paid a fee, which is called legal fee. Banks also apply this fee to your home loan.