NEWS & ADVICE : HOME LOANS
HDFC chief insists on retaining prepayment penalty on home loans
By Joseph Samson
Oct 10, 2011
Print    Email    RSS   

Talks are on everywhere with regulators wanting to do away with prepayment penalty being levied on home loan borrowers for floating rate loans.

Lenders have however showed their dissatisfaction in this regard. Chairman of housing finance major, HDFC, Mr Deepak Parekh has said that with total waiver in prepayment penalty being imposed, serious implications can come up the way of lenders.

"If our lenders are charging us pre-payment charges, why are we not allowed to charge pre-payment charges? If one bank doesn't, every bank will have to. This is our source of income. We want to do more work in the future... looking forward rather than trying to protect your book, rather to control your book and rather than keep your customers within your ambit. I don't think it is a good sign," he said.

"Certainly this (greater substitutional housing finance) was not what one wants for the system," he added.


 


(Comments Posted : 2) Post Your Comments
1. Banks are discouraging customer to shift their loans. When ever there is an increase in interest rates, they will increase more, but not vice-versa. There are cheating the customers by increasing the Spread and always giving benefit to new customers. Axis bank is the only bank which does not charge any PRE-Payment penalty for the loan transfer. Banks has to justify existing customers before making any changes in the interest rates..
Kumar (Posted: Oct 12, 2011)
2. Defiantly HDFC deos not want to levied the pre-payment penalty as HDFC is one of the biggest cheater and knows well how to make slaves their customers. I wanted to see this HDFC without customers, then they may change their attitude. He is saying that if levied there will be serious implication, what implications, non-sense, Axis Bank is doing the same for years without any implication, why can not HDFC, this is all cheating.
Venkata (Posted: Oct 10, 2011)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Joint Home Loan: A wise decision for a...
Should interest rate only be considered in...
Complete Guide to the Home Loan Process in...
Admissible deductions under Section 80C
Step up loans: An easy way to own a dream...


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