Late Payment Charges:

Always make sure that make sure you follow your EMI due dates diligently. Banks and NBFCs charge a late payment charge for every delayed EMI. On an average, late payment charges can vary from 200 to 500 plus 2 per cent additional interest as penalty. Other than this there are loan related charges that pertain to loan statements, foreclosure letters, duplicate copies of no objection certificate/no due certificate, etc.

Fee Of Loan Conversion:

If you have taken up a home loan with a floating rate of interest but now want to switch to a fixed interest rate or vice versa, the bank will charge a loan-switching fee to facilitate such a request. While charges vary from bank to bank, most banks on an average charge 2 percent of the outstanding loan amount to facilitate such a switching as requested.

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