NEWS & ADVICE : HOME LOANS
NHB brings directives to waive off prepayment penalties
By Joseph Samson
Oct 20, 2011
Print    Email    RSS   

National Housing Bank, the umbrella body governing all housing finance companies has finally come up with directives which prevent lenders from charging penalty to customers for pre closure of housing loans, subject to conditions.

Prepayment of a home loan in case of a floating rate loan can be done through any source without attracting penalty by the customer. On the other hand a fixed rate home loan can be preclosed by the customer using only his own sources.

NHB has also asked housing finance companies (HFCs) to maintain equal stature in case of floating rate home loans given out to old as well as new customers.

"The directive to ensure uniformity in floating interest rate loans charged to old and new customers with the same risk profile is aimed at bringing efficiency in the home loan market. This will give borrowers the choice to move to a lender charging lower interest rate," Mr R.V. Verma, CMD of the bank said.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Pre-pay your home loan
What if you default on your loan?
Effect of employment on loan eligibility...
7 most common Home Loan problems faced by...
Credit score from CIBIL: will it really...


I want my Housing loan provisional certificate....
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