Tuesday, April 17, 2012

Prepayment charges on home loans abolished

Reserve Bank of India, in it April 2012 monetary policy review, has abolished the prepayment charges charged by banks from home loan borrowers on the prepayment of the outstanding principal before the loan maturity. 

The move is definitely positive for consumers but slightly negative for banks like ICICI Bank which are heavily exposed to home loans. 

However some private banks have already been providing home loans without prepayment charges.

RBI has cut the repo and reverse repo rate by 50 basis points indicating a rate reversal time which would benefit banks, real estate and auto companies going forward.

1 comment:

  1. WoW ! that great, with this policy the interest rates on loan and cars prices will be down & once again it becomes easy to buy a home and car.


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