The National Housing Board (NHB) has announced that customers who have availed teaser home loans can now pre-pay their loans during the floating rates phase without any penalty. RBI has also asked the banks to stop charging penalty on dual rate home loans.
Teaser home loans or dual rate home loans are special loans, which provide a lower interest rates for the initial stages and revert to the existing interest rates after that period.
RBI had prohibited banks from charging prepenalty on floating rates home loans. Many banks were taking advantage of lack of clarity regarding dual rate loans, and considered such loans as fixed rate loans and charged penalties on prepayment.
Teaser loans were devised by former SBI chairman, Mr. OP Bhatt who innovated regular loans to allow bank deploy excess funds and also capture a large market share in vehicles and home loans segment.
2 comments:
Know the benefits of teaser home loans. Good post
Home Loan Banks
really this is very beneficial for the person to pay their Amount.
Home loan utah
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