The new home loan rules have been announced by the Reserve Bank of India (RBI) and have brought in relief for borrowers. These are the RBI guidelines regarding home loans meant to lessen the burden to customers who have had high EMIs with expensive loans.
Banks will have to adjust the terms of the loan and have to give flexibility and convenience in the EMI repayment facility under these new rules. This measure is after the financial stress burden due to high loan costs.
Easy Loan Process without Covert Charges
With the rules in effect, most clients will be able to apply for a loan without worrying about hidden charges. In a bid to make the bank loan process more transparent, the RBI has mandated that banks cannot impose additional costs such as processing fees, property document charges, or other hidden expenses. Such decisions help make funds available to new loan applicants without the hindrance of charges that are hidden in these loans. The simplification of the lending process by RBI would help millions of its customers even more by making it easier and cost-efficient in home loans.
Time-Bound Return of Property Documents
Under new home loan rules, this is one of the biggest reforms pertaining to the strict time-frame of returning the property documents to the borrowers. The new directive from RBI, however, says they will return these documents within just 30 days after availing of loan repayment. Otherwise, there would be a penalty of ₹5,000 for each case. This step is a solution to the longstanding complaint among customers who have to face delayed returns of property papers in the clearing of loans.
Safe Storage of Property Documents in Branches of Banks
In the name of open visibility and safety, the RBI has ordered that all property documents of importance will remain in the branch of a concerned lending bank until the entire loan is paid off. After the loan settlement, the document will be made available to the customer at the same branch within the prescribed 30-day period. The certainty of lending banks to borrowers assures a safe and accessible property document, now worried about its safety and accessibility.
Compensate for Lost or Damaged Documents
Under customer service policies, RBI has now announced a compensation policy for lost or damaged property documents. For the loss or damage caused by a bank to a customer’s papers, the bank should bear the responsibility and provide compensation against such a loss. Further, it should prepare new documents and return them to the customer within 30 days. This ensures the protection of customers’ interests at every step of the loan process.
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