What are the charges under other charges in a loan?
When opting for any loan, make sure you read the terms and conditions carefully and understand the other charges to avoid any disappointment at a later stage. Processing fee charges, Legal fee charges, Prepayment charges, Late fee charges, Loan conversion fee, MODT fee, Document retrieval fee and Admin charges are all part of other charges depending on your loan type.
Well, it really depends on what kind of loan you’re referring to. In any case here are a few lesser known Home Loan charges:
Conversion fees – This is the amount you need to pay to lower your interest rate during the tenure of your loan
MODT charges – Memorandum of Deposit of Title Deed registration usually costs about 0.1% ot 0.2% of the Home Loan amount.
Administrative charges – Not the same as processing fees. Some banks charge administrative charges separately, usually for application processing.
Documentation charges – Since Home Loans require a lot of documentation, completing this documentation may involve certain charges.
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