Old Age Home Entry Fee vs Monthly Charges in India: 2026

The entry fee is the number families negotiate. The annual increment is the number that decides the ten-year cost, and almost nobody asks about it.

A private old age home typically charges a one-time admission fee of ₹10,000 to ₹50,000, usually non-refundable, plus a security deposit of ₹10,000 to ₹4,00,000, usually refundable. On a ₹40,000 place that means around ₹1,65,000 before the first night: the first month in advance, the admission fee and the deposit.

Then the monthly fee begins, and it rises 8% to 12% a year. At 10%, a ₹40,000 fee becomes ₹58,564 by year five and nearly ₹71,000 by year seven. This guide separates what you pay once from what you pay forever, and sets out the deposit clauses worth reading before you sign.

Key takeaways

• Admission fee: ₹10,000 to ₹50,000, one time, usually non-refundable.
• Security deposit: ₹10,000 to ₹4,00,000, one time, usually refundable.
• Premium communities replace both with a lifetime admission deposit of ₹10 lakh to ₹50 lakh, often around 60% refundable.
• Government homes charge no entry fee and no deposit. Charitable homes usually a nominal amount at most.
• A ₹40,000 place commonly needs ₹1,65,000 up front, before the first night.
• The annual increment of 8% to 12% matters more than the entry fee. At 10% it roughly doubles the fee over a decade.
• Read the refund clause before paying the deposit. It is the largest single cheque and the least read paragraph.

Quick answer: what is charged when?

Filled means that is when it is charged. Half means it varies by operator.

What you pay before the first night

One-time charges by type of home, excluding the first month's fee.

Government homes charge no entry fee and no deposit. Some run a means test on the monthly side instead: Delhi charges a nominal ₹500 a month to seniors with an annual income above ₹12,000 and nothing to those below it.

Charitable and trust homes usually charge nothing, or a nominal refundable deposit up to about ₹25,000. Where those routes lead when money is the constraint is in what if you cannot afford an old age home.

Private paid homes charge both:

• The admission fee, ₹10,000 to ₹50,000, covering assessment, documentation and onboarding. Usually non-refundable, including if your parent leaves after a month.
• The security deposit, ₹10,000 to ₹4,00,000, held against dues and damage. Usually refundable, on terms that vary enormously.

Premium senior living communities often replace this structure entirely with a lifetime admission deposit of ₹10 lakh to ₹50 lakh, typically around 60% refundable on exit. Read that percentage carefully: on a ₹30 lakh deposit, the difference between 60% and 100% is ₹12 lakh.

The working number: a ₹40,000 a month place commonly needs around ₹1,65,000 up front, being the first month in advance, a ₹25,000 admission fee and a ₹1,00,000 deposit. When each piece falls due across the admission is set out in the assisted living admission process in India.

Why the increment matters more than the entry fee

A ₹40,000 place, compounding at 10% a year.

This is the part families miss, and it is worth more than any negotiation on the admission fee.

Indian homes typically raise fees 8% to 12% a year. At 10% on a ₹40,000 place:

Over a ten-year stay the monthly fee roughly doubles. A ₹25,000 admission fee negotiated down to ₹15,000 saves ₹10,000 once. A 12% increment instead of an 8% one costs several lakh over the same period.

Ask what the increment has actually been for the last three years, not what the agreement permits. Operators quote a range; the realised figure is the one that matters.

The four layers of a monthly bill

Beyond the base fee, expect:

1. Base stay, typically 60% to 75% of the total. Room, meals, housekeeping, basic care.
2. Care level charge, 10% to 30%, rising with dependency. The tiers are explained in levels of care in assisted living.
3. Add-ons, up to 40%: medicines at cost, consumables, therapy beyond the monthly quota, clubhouse maintenance at many communities, guest rooms and outings.
4. The annual increment.

A ₹45,000 quoted assisted living place commonly runs at ₹65,000 to ₹75,000 once everything is counted. The full breakdown is in what services are included in assisted living.

Six things to settle about the deposit

The deposit is the largest single cheque, and the least read clause.

5. How much is refundable? All of it, or a stated percentage? Premium lifetime deposits are often around 60% refundable, not 100%.
6. Within how many days? Get a number in the agreement. Without one, a refund can take as long as the home decides.
7. What can be deducted? Dues, damage, notice period. Ask for the deduction heads to be listed rather than left open-ended.
8. What happens on transfer? If your parent moves to a higher care level or another campus, does the deposit carry across or reset?
9. What happens on death? An uncomfortable question and an essential one. Who receives the refund, and against what documents?
10. Is it held separately? India's Minimum Standards for Senior Citizen Homes, March 2024, require a single dedicated bank account with multiple accounts not permitted. Ask how deposits are held.

Get every answer in the agreement itself, not in an email and not verbally.

What is not recoverable

• No Indian health insurance covers any of this. Not the entry fee, not the deposit, not the monthly charge. India has no long-term care insurance product at all, as set out in does insurance cover assisted living in India.
• Ayushman Vay Vandana pays ₹0 towards a fee. It is hospital cover.
• Tax relief applies to the medical portion only, up to about ₹45,000 a year at a 30% marginal rate, under the old regime only. Room, board and the entry fee are not deductible.

For the tax relief to be claimable at all, the home must bill medical items separately from room and board, from day one. Agree it before admission, because it cannot be fixed retrospectively. The full funding picture is in who pays for old age homes in India.

Twelve questions before you pay anything

11. What is the admission fee, and is any part of it refundable?
12. What is the security deposit, and on what terms is it returned?
13. Within how many days is a refund paid?
14. What can be deducted from the deposit?
15. Is there a lifetime admission deposit option, and what percentage is refundable?
16. What is the all-in monthly figure at our care level?
17. What is on the exclusions list?
18. Is clubhouse or amenity maintenance inside the quoted fee?
19. What is the annual increment, and what has it actually been for three years?
20. What notice do we get before a fee change?
21. What is the notice period on each side, and what is charged during it?
22. Will you bill medical items separately from room and board?

The full fifty-question set across the whole search is in questions to ask an assisted living facility.

The bottom line

Separate the two numbers and treat them differently.

The entry fee is a one-time cost you will forget within a year. Read the deposit clause carefully, because it is the largest cheque and the one families most regret not reading, and then stop negotiating there.

The monthly charge is the number that compounds. At 8% a year a ₹40,000 place costs ₹79,000 a month by year ten. At 12% it costs ₹1,11,000. That spread is the single biggest financial variable in the decision, it is never on the brochure, and the only way to get at it is to ask what the increment has actually been for the last three years.

Comparing costs? Elkin verifies registration, care levels and staffing before listing, so you can compare old age homes and senior living communities by care type, city and budget.

Frequently asked questions

What is the entry fee for an old age home in India?

At a private home, an admission fee of ₹10,000 to ₹50,000, usually non-refundable, plus a security deposit of ₹10,000 to ₹4,00,000, usually refundable. Premium senior living communities often replace both with a lifetime admission deposit of ₹10 lakh to ₹50 lakh, typically around 60% refundable. Government homes charge no entry fee at all.

What is the difference between an entry fee and a security deposit?

The admission or entry fee covers assessment, documentation and onboarding and is usually non-refundable. The security deposit is held against dues and damage and is usually refundable, subject to the terms in the agreement. Confirm which is which in writing, because operators use the terms loosely.

How much do I need to pay before moving into an old age home?

On a ₹40,000 a month place, commonly around ₹1,65,000: the first month in advance, an admission fee of about ₹25,000 and a security deposit of about ₹1,00,000. The figure varies widely with the deposit, which ranges from ₹10,000 to ₹4,00,000 at private homes.

Is the old age home security deposit refundable in India?

Usually, on terms that vary enormously. Check how much is refundable, within how many days, what can be deducted, what happens on transfer to another care level or campus, and what happens on death. Premium lifetime admission deposits are often around 60% refundable rather than 100%.

How much do old age home fees increase each year in India?

Typically 8% to 12% a year. At 10% a ₹40,000 monthly fee becomes ₹48,400 by year three, ₹58,564 by year five and about ₹94,300 by year ten. Over a ten-year stay the fee roughly doubles, which matters far more than the entry fee. Ask what the increment has actually been for the last three years.

Do government old age homes charge an entry fee?

No. Government homes charge no admission fee and no deposit. Some apply a nominal monthly charge based on income instead: Delhi charges ₹500 a month to seniors with an annual income above ₹12,000 and nothing to those below it. Admission is on destitution rather than payment.

Can I negotiate the entry fee at an old age home?

Sometimes, and it is the wrong thing to negotiate. A ₹10,000 saving on the admission fee is worth far less than a lower annual increment or a clearer exclusions list. Spend your negotiating effort on the increment, on what is included in the base fee, and on the deposit refund terms.

Is the old age home entry fee tax deductible in India?

No. Tax relief under Sections 80D and 80DDB applies to medical expenditure only, not to room, board or an entry fee, and only under the old tax regime. Together the two sections are worth about ₹45,000 a year at a 30% marginal rate, and only if the home bills medical items separately from day one.

What happens to the deposit if my parent leaves after a few months?

The admission fee is usually gone, being non-refundable. The security deposit should be returned less any dues, damage and the notice period, on the terms in your agreement. This is exactly why the refund clause matters: get the percentage, the timeline and the deduction heads written into the agreement before you pay.