News
Easier credit option for home loan customers likely: RBI
In a bid to ease the penalty issue of customers by delaying transfer of loans from one to the other, the apex bank may do away with processing fee for shifting within the same bank from one type to another and an industry benchmark base rate for borrowers are among the recommendations of a central bank panel on pricing of loans to make processes smoother for retail borrowers.
A Reserve Bank of India (RBI) panel has recommended a new benchmark for floating rate loans for banks to give borrowers a better estimate of their credit cost.
A working group on pricing of credit has made several other key proposals too faster transfer of home loans, facility to reset interest rates without getting caught up with when banks change their Base Rates and no extra charges on customers who shift from BPLR linked loans to Base Rate.
The report of the panel when implemented would make loans cheaper for bank customers. The panel was headed by RBI deputy governor Anand Sinha.
“This may result in more transparency in pricing, reduced customer complaints and better transmission of changes in the policy rate,” it has said.
If banks use weighted average cost of funds because of their deposits profile or any other methodology that may result in differentiation between old and new customers, the boards of banks should ensure that this differentiation does not lead to any discrimination amongst borrowers, the panel said.
“Indian Banks’ Association should evolve a set of guidelines for easier and quicker transfer of loans, particularly mortgage/housing loans,” said a report submitted by a panel headed by former deputy governor Anand Sinha. “There could also be penalties for banks which do not cooperate with borrowers in this regard.” Banks will also have to give their customers the choice of prepaying and exiting a loan, if the recommendations of this committee are implemented.
-
News4 weeks ago
KW Delhi 6 Mall Onboards New Brands
-
News4 weeks ago
Commercial Realty Gets Tech Savvy: Fast Construction, Enhanced Convenience
-
News3 weeks ago
Godrej Properties Sells Rs 3k cr+ Homes of Godrej Zenith, Gurugram, within 3 days
-
News3 weeks ago
RBI’s Status Quo on Key Policy Rates to Help Maintain the Real Estate Growth Momentum, Say Industry Stalwarts
-
News2 weeks ago
Olive Announces Dhruv Kalro as Co-Founder
-
News1 week ago
Noida’s High-Rise Societies Face Multiple Challenges Despite Rapid Urban Growth
-
News3 weeks ago
Godrej Properties Sells 5000+ Homes of Rs 9.5 cr in Q4FY24, Bookings up 84% YoY
-
News2 weeks ago
Vestian: Domestic Investors Dominate Institutional Investments in Jan-Mar’24