Loan Against Property Fees & Charges

A loan against property or mortgage loan considers your asset (real estate) and allows you to raise funding accordingly.

However, the borrower may have to incur additional costs apart from paying the principal and interest rate in full at the time of repayment. These additional costs usually make up for the services provided by your lender, deviation from the loan’s contract, penalties, or agreement fees.

Want to know how much would your final payment be?

Check out Kotak Mahindra bank’s loan against property EMI Calculator.

Kotak Mahindra bank practices the utmost transparency regarding the financial intricacies of our customers’ interests.

On this page, we list down the non-refundable LAP charges.

Fee/Charge Description	Amount in Rs.
Loan Processing Fees	Upto 2% of loan amount (plus taxes and any other applicable statutory dues) Note: ➣ Upfront Processing Fee of ₹ 5,000 (plus taxes and any other applicable statutory dues) shall be collected at the time of login which is non-refundable ➣ Non-refundable fee will be adjusted in overall Processing Fee before disbursement
Valuation Fees	Upto Rs. 5000/- (plus taxes and any other applicable statutory dues) Note: ➣ Valuation Fees are levied by the Bank towards the technical valuation and legal verification of the property for the purpose of determining its eligibility for mortgage ➣ Valuation fees are payable irrespective of the outcome of such appraisal or verification ➣ Kindly note that valuation fees are a one-time, non-refundable fee collected at the time of loan disbursement
Interest Certificate/ Statement of Account/ Amortisation Schedule	Accessed via self-service mode on Mobile Banking/Net Banking/ WhatsApp Banking: NIL Charges Physical copy requested through Customer Service/Branch: ₹ 250 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Duplicate No Objection Certificate)	₹100 (plus taxes and any other applicable statutory dues)
Charges for copy of any documents (Copy of property documents, etc.)	₹500 (plus taxes and any other applicable statutory dues)
Duplicate Issuance of List of Documents	₹500 (plus taxes and any other applicable statutory dues)
Hard copy of any other documents /letter (e.g. Subsidy Confirmation Letter, Credit Opinion Letter, Interest paid confirmation letter, etc.)	₹500 (plus taxes and any other applicable statutory dues)
Repayment mode/ Account swap charges	₹500 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Floating)*	Switch to External Benchmark Rate (Repo Rate) for Housing/ Extension/ Improvement: 0.5% of the principal outstanding and undisbursed amount (if any) at the time of conversion with a cap of ₹10,000 (plus taxes and any other applicable statutory dues)
Switch Fee (Floating to Fixed)*	₹2500 (plus taxes and any other applicable statutory dues)
Switch Fee (Fixed to Floating)*	0.5% per annum of each residual tenure with a maximum cap of 3% Note: In case of Hybrid Loans, the Fixed to Floating Rate Switch Option can only be availed after the completion of the Fixed Rate Tenure
Reschedulement of Loan Term	₹500 (plus taxes and any other applicable statutory dues)
Pre-Payment Charges	For Floating Rate Loans where the Borrower(s) is ➣ Individual: NIL ➣ Micro and Small Enterprises: NIL ➣ Others (Medium Enterprises, Non-Individual Borrowers, Companies, etc.): 2% For Fixed Rate Loans where the Borrower(s) is ➣ Individual: 1% of each year of residual period to original maturity at the time of Pre-Payment of the loan shall be levied on the Pre-Payment Amount (maximum capping of 3%) ➣ Micro and Small Enterprises and the Loan Amount at the time of booking the Loan is less than or equal to 50 Lacs: NIL ➣ Micro and Small Enterprises and the Loan Amount at the time of booking the Loan is greater than 50 Lacs: 2% ➣ Others (Medium Enterprises, Non-Individual Borrowers, Companies, etc.): 2% Note: 1. For Term Loans, current Outstanding to be considered for Full Pre-Payment Charges 2. For Dropline Overdraft, current Outstanding Limit to be considered for Full Pre-Payment Charges 3. For Part Pre-Payment: The borrower shall be required to submit the Bank any suitable proof of funds being from own sources 4. In the case of Hybrid Loans, Pre-Payment charges as applicable to Fixed Rate Loans will be levied during the Fixed Rate period. Thereafter, upon conversion to the Floating Rate period, Pre-Payment charges applicable to Floating Rate Loans will be applicable.
Instrument (Cheque/ECS/Mandate) Dishonour Charges	₹750/- Per Instance
Delay/default in payment of principal or interest/ outstanding balance	8% per annum on overdue amount
Non-payment of dues/ charges/ fees payable under loan/facility Agreement	8% per annum on overdue amount
Levy of penal charge for non-compliance of sanction terms including but not restricted to non-submission of title documents, non-commencement of construction as per undertaking, adverse repayment behaviour, other breach of agreement terms	₹5.50 per day per lac or proportionately shall become due & payable on underlying exposure (from the day of breach)
Delay or non-creation/perfection of facility or security/guarantee, etc. documentation in favor of the Bank	Penal charges at ₹5.50 per day per lac or proportionately for any delay beyond stipulated days as per Sanction letter /Facility Agreement upto 180 days from the original due date (“ODD”) Beyond 180 days, penal charges at ₹11 per day per lac. Note: ➣ The said penal charges shall be calculated on sum of limits of revolving lines and outstanding of non-revolving lines of both fund and non-fund based limits to which the security extends ➣ The term non-creation of security shall mean failure of the Borrower/Security Provider to create security in such form and manner as per the agreed terms mentioned in Sanction Letter/Facility letters or Facility/ Loan Agreements or any other Document/Instrument to secure the loan/financial facility availed from the Bank
Non-Submission of LEI Code	Rs 250/- per Month (plus taxes and any other applicable statutory dues) Note: LEI number should be Valid at the time of Disbursal to the Bank and valid LEI number should be made available throughout the tenure of the Loan. In the event of non-compliance, the applicable charges shall be applicable.
Annual Renewal Charges	0.25% of the Overdraft Limit (dropped limit after reduction of annual drop) shall be collected on the due date of renewal
Non-Utilization Charges	For Individual Customers with Loan against Property Overdraft Facility: If average utilization of facility limits for a quarter is below 25% of sanctioned limits, 0.4% p.a. on under-utilized limit or proportionately shall become due & payable on underlying exposure (from the day of breach) For Non-Individual Customers with Loan against Property Overdraft Facility: If average utilization of facility limits for a quarter is below 60% of sanctioned limits, commitment charges of ₹5.50 per day per lac or proportionately on unutilized limits
Penal charges in case of overline accounts or where the amount drawn by the Borrower is beyond the maximum Overdraft Limit	8% per annum on overdue amount
Note: ➣ Stamp Duty on Loan against Property Agreement, Overdraft Agreement, Guarantor Agreement, Registration Charges etc. vary from State to State. Stamping/Notarisation of RBI and other Affidavits are as applicable ➣ Charges for other Services would be specified as applicable when the Customer applies for those services and the same shall be payable by the borrower alone e.g. Revalidation of Sanction, Change in Property, Reschedulement of Loan, Change in EMI Date, Solvency Charges, Legal Charges etc. ➣ Taxes/ other statutory levies may be charged to the Borrower if applicable as per Government/ RBI directives ➣ In the event Loan Recall Notice stands withdrawn upon Customer regularizing the loan account, then in such cases if Customer comes for premature payment then charges can be collected as per contractual terms of the Loan Agreement ➣ For priority sector loans up to ₹50,000, loan related charges (including guarantee fees of credit guarantee schemes) and ad hoc service charges/inspection charges are not applicable. In the case of eligible priority sector loans to SHGs/JLGs, this limit is applicable per member and not to the group as a whole ➣ *The borrower can opt for switching multiple times during the loan tenure

Click here to refer to the older General Schedule of Features and Charges (GSFC) applicable for Loans Against Property till 12th October 2026.

As you can tell, the loan against property interest rate isn’t the only cost you have to pay while taking a LAP. Many lenders would lure in borrowers with quick disbursement promises or low-interest rates. However, they later charge them heavily with other costs, or worse, they refuse to cooperate. Consequently, you would not be able to do much else but play by their rules, given your real estate would now be in their seize.

It is, thus, a better idea to choose a lender who offers standard rates of interest but is transparent and reputed for proper borrower handling. Kotak Mahindra Bank is a reputed name in the banking and lending sector with thousands of happy customers in our lending books. We aspire to help you find your financial and business goals using our LAP, which comes at nominal and transparent fees.

We recommend our customers to not base their decision solely on the LAP interest rates. Secured loans have a lower interest rate. And since you have raised collateral, you would be getting a much lower interest on the loan than unsecured loans.

Please read the other applicable LAP charges. Given that you will pledge your hard-earned property’s documents in the mortgage loan, and your investment is in tow, you must read all the clauses and papers carefully.

To view the usual documents required for loan against property.

General Questions

1. What are pre-payment charges for a LAP loan?

Various factors determine the principal and interest of a loan against property. The age and nature of your property, your income status and source, your age, and the amount you are seeking are some of the critical factors.

For more certainty, you can use the loan against property eligibility calculator here.

2. Which overdraft facilities do we get for mortgage loans?

As you will have a pre-payment fee in most cases, borrowers often see pre-payment unfavorably.

Though a borrower may have the finances to retire the loan entirely, they would continue to pay interest on it simply to avoid the additional pre-payment charges. However, retiring your debts is always a smart financial move.

Therefore, Kotak Mahindra Bank offers an overdraft (OD) facility to those who would like to get free of all debt and pay off their liability early.

OD on loan allows you to withdraw or deposit as and when you want. It is ideal for those who have variable incomes and want to utilize their periodic surplus to pay off the loan. The best part is you can always withdraw your surplus whenever you need it. But, having paid it up in advance would not attract pre-payment fees if you have an OD facility from your lender.

However, please note that loans with OD facilities do not qualify for an income tax rebate under Section 80C of the Income Tax Act, 1961. Moreover, they would also have a higher interest rate than loans without overdrafts or term loans.

For a loan against property, Kotak Mahindra bank gives its customers an option to choose the OD facility.

Would you like to check your loan against property eligibilty?

FAQ's

What are the processing fees for a loan against property?

The processing fee is a one-time non-refundable fee charged for the services provided to process the loan. It is payable at the time of application, and most banks in India charge 1-2% of the total loan amount as processing fees.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

What are the documentation charges for a loan against property?

A loan applicant has to pay the documentation charges while submitting his paperwork for the loan application. At Kotak Mahindra Bank, we charge INR 10,000/- + GST + Statutory dues in documentation charges. The interest rate can be another decisive factor while choosing the right LAP loan.

At Kotak Mahindra Bank, we charge 1% + GST + statutory charges in processing fees.

What are the charges I need to pay to foreclose my loan against property?

The 2014 RBI Circular mandates that no foreclosure charges will be levied on individual borrowers seeking floating loan interest rates. However, for individual borrowers who have loans at fixed interest rates or joint borrowers with floating rates, there will be foreclosure charges applicable if the loan is retired before its schedule.

You can refer to the table above to check out our charges.

What is an overdraft facility for a mortgage loan?

There are two types of loans against property available with Kotak Mahindra Bank: Overdraft and Term loan.

In a term loan, you get a specific amount that you will have to pay at specific time intervals and a fixed interest rate. In the overdraft facility, one gets the option to choose when and if they want to withdraw. You only pay interest on the amount you withdraw, and that too, if repaid in 24 hours, attracts 0 interest. Moreover, with an overdraft facility, one can pay off their loan partly or in full beforehand without attracting additional charges.

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Loan Against Property Fees and Charges