The Interest rate , processing fee in the home loan transaction depends on the following factors :
The best borrowers with scores above 800 would avail loan from a Bank. Here the Interest Rates are floating with a linkage to the REPO rate declared by the RBI. The bank chooses which Repo rate to select. Most Banks use the 90 day Repo as bench markr and impose a margin on that rate.
So for eg the Interest rate of 6.75^% is offered as = 90 day REPO (4%) + 2.75%
Recommendation : The preference should be in the following order Banks -HFC-NBFC
The banks charge a processing fee for the loans which includes the charges for following:
STATUTORY STAMP DUTY