NEWS & ADVICE : HOME LOANS
Greater transparency for home loan seekers.
By Joseph Samson
Sep 24, 2009
Print    Email    RSS   

The Banking codes and Standards board of India (BCSBI) has asked its member banks to justify their lending policies and other services thus ensuring more transparency in the way banks price their home loans.

BCSBI was formed by RBI in November 2003, under the chairmanship of the then deputy governor, S.S. Tarapore, to address issues concerning availability of adequate banking services to common man.

According to the directions by the BCSBI, the banks will have to inform the customers, who avail home loans at floating rates, of the reference rate to which the floating rate is attached.

KJ Udeshi, chairperson of the BCSBI, said that the banks would have to disclose changes in such reference rates on their websites.

These codes will be applicable to all major commercial banks in India. Banks have been asked by RBI to voluntarily accept the codes, which entails the banks to justify their pricing mechanisms. They will have to abide by the publicly announced policies, failing which the Board could intervene and ensure that the banks comply with the announced policies.

RBI's deputy governor, KC Chakrabarty said that as a regulator, they had the onus of the customers. He added that the new norms will aid the vulnerable sections of the society as they do not have any another platform for redressal.

The new code urges the banks to explain Income Tax Act provisions applicable to interest income. Bank will have to dispose off customer complaints within 30 days. Besides this, banks will have to come out with the most important terms and conditions (MITC) for credit cards and loans that are concise and comprehensive.

Customers can now check with the banks' websites for policies relating to cheque collection, compensation, collection of dues and grievance redressal.

BCSBI, in association with Reserve Bank and Indian Banks' Association (IBA), had first issued the code in 2006.

In order to enhance the credit delivery mechanism in the industry, BCSBI plans to set up a credit counselling centre in Mumbai from next month.

The service will be free of cost for member banks' customers.

 


(Comments Posted : 2) Post Your Comments
1. Hello,
Do you need a Loan at a low interest rate? Do you have Bad or No Credit? Do you need money to start up a business? Do you need a Car Loan? You want to re-mortgage your house? Are you in need of a Large Capital to start up a Large Scale Company? We give out loans ranging from $1,000 to $10,000,000. Our loans are well insured and with maximum security at an interest rate of 3%, we grant loans to individuals and organizations with intentions of house renovation , debt consolidation, refinancing and also establishment of business ventures. contact us via email address:TransUnionMicroFinanceBank@accountant.com
Trans Union Finance (Posted: Jun 15, 2015)
2. Good day everyone, I am Kate Davids by name, i am from of new york USA, i have been looking forward for a genuine loan company for the past 2 months and all i got was group of scams who made me to trust them and at the end of the day, they duped me of $5000 without giving anything in return, all my hope was lost, i got confused and frustrated,i find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net again, because i never trusted any loan company again since i was scammed, so i went to borrow some money from a friend, i told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, though i never believed but i tried and to my greatest surprise my loan was granted to me within 24 hours, i could not believe, i am happy and rich again and i am thanking God that upon this scams all over the places a genuine company like this still exist, please i advise everyone out there who are in need of loan and can be reliable, trusted and capable of paying back at the due time of funds to contact (contact@haiyingonline.com ) or hai_ying44@yahoo.com)and be free from scams on the internet. they will never disappoint you.
Kate (Posted: May 20, 2015)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
e-filing of income tax returns at...
Factors to Evaluate before opting for Home...
The right age for home loans!
Home Loans: How to reduce your floating rate
Income Tax Benefits on Joint Home Loans


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive