About the Processing Fee Calculator
What is the Processing Fee Calculator?
Most lenders charge a processing fee of 0.25–3% of the loan amount to cover appraisal and paperwork, plus 18% GST on the fee. It is usually deducted from the disbursed amount, so you receive less than the sanctioned loan.
Enter the loan amount, fee rate and GST rate. The calculator shows the base fee, GST and total processing cost.
How to use the Processing Fee Calculator
- Loan Amount (INR) (sample: 25,00,000)
- Fee Rate (%) (sample: 1)
- GST on Fee (%) (sample: 18)
- Press Calculate Fee (results also refresh as you type). The result card shows the Total Processing Cost, along with Base Fee, GST on Fee and Fee Rate.
Formula used
Total processing cost = Loan × Fee % × (1 + GST %)
- GST = 18% on the processing fee
Some lenders charge a flat fee or cap it; negotiate — processing fees are often waived during festive offers.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Loan Amount (INR) | 25,00,000 |
| Fee Rate (%) | 1 |
| GST on Fee (%) | 18 |
| Result | Value |
|---|---|
| Total Processing Cost | ₹29,500 |
| Base Fee | ₹25,000 |
| GST on Fee | ₹4,500 |
| Fee Rate | 1% |
Tips for using the Processing Fee Calculator
- Processing fees are generally non-refundable, even if you do not take the loan.
- Home loan processing fees are often capped at a few thousand rupees in promotional periods.
- Include the fee when comparing loans using the APR.