Floating rate loans
The RBI has suggested that banks must effect any change in floating rate loans only at the agreed-upon reset date. This is aimed at ushering in transparent and appropriate pricing of credit, according to an RBI working group. This is good news for existing home loan borrowers. What this means is that any change in [...] Continue Reading »
Following the the State Bank of India (SBI), Syndicate Bank, Indian Overseas Bank and Union Bank of India, state-run Punjab National Bank has also announced a reduction in its interest rate on housing loans by 25 basis points across the board. Now a potential customer can take a 15-year floating rate loan of Rs. 20 [...] Continue Reading »
Reserve Bank of India (RBI) said floating rate home loans will be spared penal charges in case of prepayments. Besides the decision on home loans, the action points include measures to protect customer interest in unauthorized ATM transactions, and a policy for compensation to customers for mental harassment. The regulator for housing finance companies like [...] Continue Reading »
