In US there is a concept of 'pre approval' letter that banks can provide you for no fee; that you can leverage for finalizing home purchases. I was trying to find out if we have similar concept in India.

Or do banks charge you fee (processing fee?) for getting that pre-approval letter? If they do, does anyone know which banks charge how much and which banks would you recommend that charge comparatively less?

I think I had come across a thread that discussed similar information but couldn't locate it.
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  • Depends on yr. negotiating skills & contacts, minimum could be 5000 bucks to 0.5 % of the loan value .
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  • Here in INdia, There is this concept of Pre-approval of loan. But for sure you have to pay pre-processing fee. PSU Banks dont provide this opportunity as well.

    Pvt banks do provide this based on your negotiation skill. It varies from bank to bank. LIC takes 1000+Taxes, Other charge approx .5% of loan value as manoja has written.

    However the most important part here is that you need to check the validity of the pre-approval letter. It is not infinitely applicable. Generally it varies from 3-6 months. After that if you ask for disbursement the bank will charge same processing fees again.

    Regards,
    Vipul
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