Problems with Home loan

1. Loan For Home

2. Problems with Home loan

3. With home loans come great advantages and problems altogether. RBI has recently taken a lot of measures to protect customers with home loans and get them better deals also. • But, here are a few areas where RBI can look into as a part of its consumer protection initiative: • Banks have an interest in the property mortgaged with them and they need to ensure that it is protected against any eventuality. • At the same time banks also gain by selling insurance policies. But what need to be insured are the cost of construction and not the cost of land.

4. Although the law actually protects the bank’s interest lenders. • Rather than to facilitate smooth registration by the institution, borrowers are forced to approach agents and spend a few thousands to complete this process. • Lenders often poach Loan For Home borrowers of other institutions. • But when it comes to their existing customer they do not offer them the benefit of new rates.

5. Some banks have resorted to complicating the pricing of home loans introducing interest free years in middle of the tenure of the loan. • Innovation in financial products is good only as long as they do not obscure pricing. • Borrowers need to have the opportunity to compare the cost of one home loan against another. • One way to make the pricing transparent is to disclose the cost in the form of annualized yield to the lender based on prevailing rates.

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