Home Loan Guidelines: Home loan takers face many problems while taking a loan from the bank; many customers keep facing problems until the loan is repaid. Now RBI has issued a new guideline; this will give great relief to those taking out home loans (RBI Home Loan Guidelines). Let us know the latest update about this.
RBI is also responsible for the smooth running of the banking system in the country. Therefore, RBI also inspects banks from time to time and also issues new instructions if any flaws are found.
Now RBI has issued a new guideline (Home Loan Guidelines) regarding home loans. This will give great relief to home loan takers. Actually, the Reserve Bank had received complaints of arbitrariness in giving home loans by some banks, after which new guidelines have been issued.
This is how interest was being collected:
In the inspection of RBI (Home Loan Guidelines), it was revealed that most of the banks were collecting interest from the loan holders from the date of loan approval. Whereas, according to RBI (RBI home loan rules), this loan should start when the amount arrives in the account. Even when the loan was distributed through a check, some banks collected interest from the date of issue of the check, and the checks were handed over after several days.
Now RBI has given these instructions:
Now RBI (Reserve Bank of India) has instructed that the loan amount should now be sent to the online account instead of by check. Now, after the new guideline issued by RBI, the loan takers have gotten a big relief, but the banks have suffered a lot.
Banks’ arbitrariness will be stopped.
Now banks and NBFCs will be able to charge interest on loans only as per the prescribed rules. Wrong methods will no longer be used while collecting interest on home loans from customers. The new rules (Home Loan Guidelines) will also put a stop to the arbitrariness of banks. Now all banks and NBFCs have been instructed to charge interest from the actual disbursement date of the loan amount. Banks will have to strictly follow these rules; action can be taken on violation.
Every bank charges different processing fees on different loans. If we talk about major banks, this much processing fee is charged on home loans by State Bank of India(SBI), HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Punjab National Bank (PNB).
SBI charges this much processing fee:
On behalf of the Reserve Bank of India (RBI), it charges 0.35 percent of the loan amount plus GST as a processing fee on home loans. This is a minimum of Rs 2,000 plus GST and a maximum of Rs 10,000 (SBI home loan processing fees) plus GST.
HDFC home loan processing fee
The largest private bank, HDFC, charges a maximum of 1 percent on the loan amount and a minimum of Rs 7500 as a processing fee (HDFC home loan processing fees).
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ICICI Bank home loan processing fees.
ICICI Bank (ICICI home loan processing fees) charges 0.50 percent to 2 percent of the loan amount or Rs 3000, whichever is higher, as processing fees.
PNB charges this much processing fee:
Punjab National Bank charges 1 percent plus GST on the home loan amount from its customers as a processing charge (PNB home loan processing fees).