Pre Pay Home Loan With penalty
In a bold move –NHB (National Houisng Bank) the regulatory body for housing finance companies have instructed to all companies to stop collecting prepayment penalty for floating rate home loan customers.
According to data available 90% of customers avail loan at floating rates and that’s a great news for the customers. The average prepayment charges are about 2-4% till now.
With this move a customer can balance transfer his home loan to a different bank or company if the rates are higher for his company.
Rbi hasn’t given such clear directives to Banks but has recommended this.
The Largest Housing Finance companies are HDFC, LIC Housing Finance, Indiabulls home finance etc.
- The customers of above now can prepay without any penalty
The Largest Banks are SBI, Axis, PNB etc.
- The customers of Banks may still have to prepayment charges.
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