NHB guidelines on home loan prepayment coming soon
By Joseph Samson
Oct 10, 2011
Print    Email    RSS   

National Housing Bank (NHB) has indicated on soon coming with directives regarding prepayment of home loans by borrowers.

Usually in case the borrower prepays the loan from his own funds, banks do not charge any penalty. The directives the thus meant for the clause when the borrower wishes to prepay by means of borrowing another loan for the same.

NHB which is the umbrella body governing most of the housing finance companies (HFCs) has however not taken a firm decision as to prepayment penalty should be totally removed in the above situation or not.

According to CMD of NHB, Mr R V Verma, "We are looking into the situation of commercial refinance. Guidelines or a circular will be issued on this. We are co-ordinating with the RBI so that we can come up with norms that could be uniformly applicable to the entire housing finance industry."

While HFCs come under NHB, all banks in India are under the regulation of Reserve Bank of India.


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

 Select a product:

Repaying multiple loans – Which one...
Know your home loan better
Reasons for rejection of loan application
What should you do if interest rates are...
Six tips to choose your home loan lender

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

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