What are the AMC Charges? A Complete Guide

What are AMC Charges?

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What are AMC Charges?

2 min 21 Mar 2025

Highlights:

Understanding AMC Charges
How is AMC calculated?

Understanding AMC Charges

Annual Maintenance Charges (AMC) refer to a fee that lenders can charge for maintaining and servicing a Flexi Loan account. These charges primarily apply to Flexi Loan Accounts, where borrowers enjoy flexibility and have the option to withdraw funds from a pre-sanctioned limit at a time of their preference.

Typically, AMC is not levied on standard Home Loans, but on Flexi Loans. However, readers are advised to read the detailed terms and conditions offered by their lenders to ascertain whether they will be charged the fee.

How is AMC calculated?

How AMC is charged on Flexi Loan Accounts remains at the discretion of the lender. However, many lenders consider the following parameters:

Loan amount
Drop Line limit

Lenders can also request an upfront payment for the AMC in the first year of the loan, at the time of disbursement. Borrowers can opt to switch their Flexi Loans into a Term Loan, if they would like to avoid these charges.

Frequently Asked Questions about Annual Maintenance Charges

AMC stands for Annual Maintenance Charges, a fee that lenders charge to maintain Flexi Loan accounts.

No, AMC charges are typically applicable to Flexi Loans and do not apply to standard Home Loan EMIs. However, in certain cases, AMC may be applied on Top-up Loans as well.

If you want to avail of a Home Loan, but are on the fence about Annual Maintenance Charges, you can proceed, as AMC is typically not charged on standard Home Loans. For those who have a Flexi Loan and wish to avoid these charges, can opt to switch to a Term Loan.

No, processing fees are a one-time charge at loan disbursal, whereas AMC charges apply annually for maintaining Flexi Loan accounts.

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