The finance ministry's advice to public sector lenders to increase the tenor of home loans in order to reduce the burden of rising interest rates on the borrowers is proving to be difficult to manage for the banks.
The biggest issue that banks are facing is the fact that in most of the cases, the extension in loan tenor reached out to be exceeding his job life.
In this regard, CMD of Canara Bank said that his bank was extending the tenor in most cases to 65 years.
Speaking on the issue, Chairman of the largest lender of the country, State Bank of India, Mr Pratip Chaudhuri said that the bank is still in the process of analyzing the scenario and that it itself aims for a way out so that the borrower doesnt have to face the hit.
"We are trying to see how we can implement (the circular ) for loans which are security based such as housing loans, said SBI managing director A Krishna Kumar.