Home loan
Mangesh
(Querist) 07 September 2009
This query is : Resolved
Dear Sir/Madam,
Is it mandatory to pay the processing fees for the home loan if the expected loan amount is not passed or the loan is on hold due to non-completion of documents? Or the processing fees are only charged after the loan process is completed.
Is there any law for the processing fees to be charged for Eg. 1% of the loan amount or as such?
If I do a stop payment for processing fee cheque can I be sued by law?
I will be grateful if you can provide your expert opinion on above.
Best Regards
Yash
riven
A V Vishal
(Expert) 07 September 2009
Yash
The home loan is processed on specific request of the customer in order to avail the loan. In the process the banker has offer a wide range of services like legal scrutiny, valuation, documentation etc... for which they charge the customer a processing fee, generally there is no law governing the processing fee, it differs from bank to bank and is governed by the internal regulation of the banks.
In case, you do stop payment of the cheque after the bank has processed your file, then the bank can sue you, however, if you are not interested in going for the loan request the banker to stop the process and return the cheque. Take care that you intimate them in writing. In such case the bank cannot sue you for stopping the payment of the cheque.riven
