The Reserve Bank of India has always protected the rights of customers; from time to time, guidelines with respect to banking will come up. This new guideline recently stated by the Reserve Bank of India on the subject of home loans will very much help the millions of those consumers. Consumers’ money will also get saved. At the same time, besides restraint on arbitrary charges by the banks, financial loss will also be created.
Many types of loans come to customers from a bank. The RBI has made guidelines for every type. Mainly, it is seen that when we take a personal loan, the loan goes to our account within a few minutes. Of course, in many cases, it takes a while between loan approval and the money coming into the account. During that time, banks used to play their game, due to which they ate way more money from the customers. RBI has now put a check on this.
When RBI inspected, the game was open, put a rein
Inspection was an annual affair to the Reserve Bank of India. The inspection revealed that some banks and loan giving companies charge interest from people in unwarranted ways. This is the very reason that prompted the Reserve Bank of India to adopt a new guideline. Under this new rule, henceforth the bank or other company will be able to start charging interest only from the date of actual disbursement of home loan.
More money had to be paid
RBI’s inspection into home loans among banks found that several banks grant the loan but delay its credit to the account. While charging interest, however, interest was levied on the date of loan approval or issuance of cheque. This was contrary to the principle that interest should be charged from the date the money is credited. Now, RBI has come up with strict guidelines in this regard and has directed that interest be charged from the date money is credited to the account.
RBI explains in its guidelines because many cases have been received
RBI found that some banks have been charging interest on loans from the date of loan approval instead of loan disbursement during onsite inspection of banks. At the same time, it also discovered that interest on the cheque loan was being charged from the date of the cheque. Yet, that cheque was given to the customer after many days. To abolish such incidents, RBI has imparted that companies lend using online transfer rather than providing cheques.
Banks are charging processing fees, know the rate
Most of these banks, including State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Punjab National Bank, offer home loans. All these banks are covered by RBI guidelines. Let us now take a look at the processing fees of some top banks.
- Starting from SBI now; SBI Bank charges consumers around 0.35 percent of the loan amount plus GST in the name of processing fee on home loans. This amounts to minimum Rs 2000 plus GST and a maximum Rs 10000 plus GST.
- HDFC charges a maximum 1% and a minimum of Rs 7500 processing fee towards home loan amount.
- Meanwhile, ICICI Bank charges 0.50% to 2.00% of the loan amount or Rs 3000, whichever is higher.
- Punjab National Bank (PNB) charges its customers 1 per cent of the loan amount plus GST as processing fee.
