NHB scraps pre-payment fine on dual rate housing loans
The National Housing Bank has scrapped pre-payment penalty on dual rate housing schemes.
The Reserve Bank of India, the banking regulator, has already removed pre-payment charges on dual rate schemes.
Housing Finance Companies (HFCs) generally charge 2-4 per cent of the loan outstanding as early repayment charges in order to deter customers from closing the loan with the existing lender and move on to cheaper loans.
There have been mixed responses about the step taken by NHB. Housing finance companies like HDFC and LIC Housing Finance are definitely going to be affected by the move.
Experts maintain that the move will have an impact on the companies while banks will have an unfair advantage.
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dual rate housing schemes, Housing, Housing Development Finance Corporation (HDFC), Housing finance companies, housing finance companies (HFCs), Housing loan, Housing loans, National Housing Bank (NHB), Reserve Bank of India (RBI)
[...] NHB scraps pre-payment fine on dual rate housing loans [...]
[...] NHB scraps pre-payment fine on dual rate housing loans [...]