To protect the rights of their customers, the Reserve Bank of India frequently issues guidelines to banks. Now, the new guidelines issued by the Reserve Bank of India regarding home loans would benefit crores of consumers. This will also help save their money. At the same time, it will help curb the arbitrary acts of the banks, leading to financial loss.
Loans can be classified into different categories from Banks. RBI has provided a guideline on each kind. It is said that most of the times, while availing personal loan, money is credited in one’s account in no time. However, it takes ages sometimes even after being sanctioned to reach the customers. This is the time when banks start their dirty games for collecting undue money from customers. This has now stopped with RBI.
When RBI inspected, the game became open, then the rein was put
The Reserve Bank of India (RBI) carried out the annual inspections. It was found that a few banks and loan companies used to charge interest from consumers in the wrong ways. This created law changes in RBI regarding such illegal transactions and made a new rule as now onward the bank or other company shall no more charge interest except for the actual day for which home loan is disbursed.
New money has to be paid.
Banks provide loans, but it takes time for the transfer of amount into the borrower’s account. Such is collection of home loans during the RBI inspection. It charges interest from date of loan approval or cheque issuance. However, interest must start only on that date when the money is credited to the borrower’s loan account. Now RBI has issued strict guidelines regarding this issue and instructed giving interest only when the amount is credited into the account.
RBI found many cases and clarified in the guidelines.
RBI (RBI update) found in onsite inspection of the banks that some lenders were charging interest starting from the date of loan approval and not by the date of loan.
Some other findings also indicate that in case of loans disbursed by cheque, lenders have taken interest from the date of cheque. Meanwhile, the customer has received that cheque many days later. The Bank of India has, therefore, laid down a guideline to prevent it from taking such cases.
Banks charge processing fee, know the rate of process
All these types of lending institutions include many banks, for instance such national level banks as State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Mahindra Bank, etc., offer home loans. All these banks are obliged to comply with the RBI’s guidelines. Let us also see the roll-out of these typical processing fees of big banks.
Amongst all of the lenders, let’s start with SBI(SBI Home Loan). SBI Bank has the processing fee for home loans of 0.35% of the loan amount plus GST. This is a minimum of Rs. 2000 plus GST and a maximum of Rs. 10000 plus GST.
In HDFC Bank(Fees on HDFC Home Loan), the processing fee for availing the home loan will be a maximum 1% of the loan amount, with a minimum being Rs 7,500. 0.50% to 2.00% with a minimum of Rs 3,000 is the ICICI Bank home loan processing fees on loan amount: Amongst other, this bank charges 1 percent of the loan amount plus GST as the processing fees on behalf of the Punjab National Bank (PNB).
