
All of us have a mortgage requirement at some point or the other in our lives. Whether it is for buying our dream home, or financing our educational needs, or for any other reason whatsoever, all of us have resorted to drawing a mortgage at various stages of our lives. Before we dive into understanding the different technicalities that are inherently associated with taking a mortgage, it is first essential for us to understand the concept of disposal in the first place.
Expenditure is a sum of money paid by a solicitor to a third party while making a sale or a purchase for their client. Effectively, it can be considered an out-of-pocket expense that a solicitor incurs on the client’s behalf to expedite the sale or the process in question. This amount is then subsequently added to the final invoice of the client. The amount that a client pays for expenditure, hence, is the exact cost of the expense borne by your solicitor at the outset.
Some Examples
A typical example of a disposal fee is the money paid for medical reports or other related transcripts handed over by experts. Land registry fees, search charges, and same-day electronic transfer of fund fees constitute other examples of disposals. Some of the other cases or processes in which expenditure charges are levied are bankruptcy searches, local authority searches, environmental searches, house loan charges, drainage searches, telegraphic transfer fees, and stamp duties, among many others.
In most cases, and rather frequently, mortgage processing fees tend to become a major cost. Especially in those processes that require reports to be furnished by the relevant experts to establish evidence for the case, the fees generally end up being on the higher side of things. A good example of such a case is a disability case, where the claimant must first establish and confirm their disability before proceeding with the subsequent stages of the process. Such a mechanism, thus, proves to be a major hurdle in cases involving discrimination.
In the case of a home loan, the final stage involved in the loan process is referred to as the disposal.
Disbursing an education mortgage refers to the eventual stage in the mortgage process that is availed by a student aspiring to study abroad. Here, the term disbursement is associated with wiring the sum of the education loan to the borrower’s account from the lender’s.
Bank Name |
Processing Charges |
Pre-payment charges |
HDFC |
Up to 2.5% |
4% of the outstanding principal for 13-24 months, 3% for 25-36 months and 3 % beyond 36 months |
ICICI |
Up to 2.25% excluding GST |
5% p.a. of the outstanding principal, excluding GST |
The State Bank of India |
0-1% of the mortgage amount |
3% for power mortgages and pension mortgages |
Union Bank of India |
0.5% of the mortgage amount |
- |
Bank of India |
2% of the morgage amount excluding tax |
Zero for floating-rate mortgages and 0.65% per annum of the outstanding mortgage amount for fixed-rate mortgages |
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