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New home loan takers to gain instantly from RBI cut

New home loan takers to gain instantly from RBI cut

Finance
NEW DELHI: New home loan borrowers are set to immediately gain from the latest round of rate reduction by RBI but existing borrowers can get the benefit of repo-linked rates by paying legal and administrative charges, which has been waived by certain banks but others are charging as much as Rs 10,000. On an average, home loan rates are likely to fall by 25 basis points for new borrowers, and the gain can be higher for those who have not migrated so far from marginal cost of lending (MCLR) -linked loans to those linked to RBI's repo rate and doing so now. To take the benefit of the new system, existing borrowers, whose interest rates are pegged to the bank's MCLR, will have to migrate to the new system. For this, banks are charging legal and administrative charges, which varies from nil to...
Bajaj Housing Finance reduces home loan interest rates

Bajaj Housing Finance reduces home loan interest rates

Finance
Bajaj Housing Finance announced Monday that it was reduced home loan interest rates. A press release issued by the non-banking housing finance company (NBFC) stated that it has cut interest rates on home loan up to Rs 30 lakh to 8.6 percent from 8.8 percent. The revised rates would be effective from now and would apply to all eligible customers. The press release also stated that those borrowers planning for a home loan balance transfer will get this reduced rate. Bajaj Housing Finance offers home loans for up to Rs 3.5 crore for borrowers purchasing their first house, constructing an own house or renovating the current house. The company also offers its customers a top-up loan of up to Rs 50 lakh, without any extra documentation, to finance key requirements like repairs and renovation. Le...
PNB, Allahabad Bank launch loan products linked to repo rate

PNB, Allahabad Bank launch loan products linked to repo rate

Finance
NEW DELHI: Leading state-owned lender Punjab National Bank and Allahabad Bank on Tuesday announced linking of their retail loans with the Reserve Bank's repo rate, which will make loans cheaper. Punjab National Bank launched PNB Advantage, a retail lending scheme linked with the repo rate effective Tuesday. "In the new schemes rate of interest will be 0.25 per cent less than the existing applicable rates based on MCLR. The new rates will vary from 8.25 per cent to 8.35 per cent for housing loan borrowers and 8.65 per cent for car loan borrowers," PNB said in a statement. Existing customers of the bank will also have an option to switch over to new Repo Linked Lending Rates (RLLR) with minimal charges, it said. Allahabad Bank said it has benchmarked its loans up to Rs 75 lakh with the exter...

What to Do If You're a Victim of a Student Loan Scam

Finance
[unable to retrieve full-text content]You can t undo the damage that s already been done but you can stop scammers from ruining your life further Image source Getty Images Student loan debt has become a 1 5 trillion crisis in our country and where there s a crisis there are scammers hoping to capitalize Latest Articles in
RBI bans NBFCs from charging loan foreclosure penalties

RBI bans NBFCs from charging loan foreclosure penalties

Finance
The Reserve Bank on Friday barred non-banking finance companies from charging pre-payment penalties or foreclosure charges from individual borrowers. "NBFCs shall not charge foreclosure charges/pre- payment penalties on any floating rate term loans sanctioned for purposes other than business to individual borrowers, with or without co-obligants," the central bank said in a notification, without specifying from when the new ruels will be effective. The central bank said the relevant rules governing the same have been updated to reflect the change. Foreclosure charges are part of the fee income for any lender and adds to its bottomline. These direction covers both deposit-taking and non- deposit-taking NBFCs which are considered systemically important ones. It can be noted that in May 2014, ...