Special rate scheme on home loans not the same as it looks!
Few years back, the home loan which was provided under teaser loan scheme by a housing finance company (HFC), is not the same anymore when repaying it back.
The prepayment charges amounted to Rs 2 lakh for a person who had availed a Rs 1 crore loan under that special rate scheme.
As per a circular issued recently by the National Housing Bank (NHB), all loans given under special scheme should be treated as fixed rate loans and prepaying special scheme loan also involves a penalty.
The circular that has been out only applies to teaser based loans and not dual rate loans as confirmed by the chairman of NHB.
To read more real estate news:
SBI to provide home loan at cheaper rates
Home loan defaulters fall as credit scores rise
Source: Business Standard
circular, HFC, home loan, Housing finance company, Loan, National Housing Bank, NHB, Prepayment charges, prepayment charges for home loan
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