Posts Tagged ‘HBA’

Clarifications regarding House Building Advance

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Clarifications regarding House Building Advance

1-17011/6(3)/13/2018-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated: 1.08.2018

OFFICE MEMORANDUM

Subject: Clarifications regarding House Building Advance – reg.

The undersigned is directed to say that in partial modification to the Ministry of Housing & Urban Affairs OM No. 1.17011/11(4)/2016-H.III dated 09.11.2017 regarding House Building Advance Rules – 2017, the competent authority has approved to modify the provision of para 2(i) in place of the existing provision.

“Constructing a new house on the plot owned by the employee or the employee and the employee’s wife/husband jointly with the clear title of the plot”

All the other existing provisions in the said OM of even no. dated 09.11.2017 shall remain same.

(Shailendra Vikram Singh)
Director (IFD)
Tel:011-23062798

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Grant of Advances – 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

Grant of Advances – 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

7th CPC House Building Advance

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

PC-VII No : 108/2018
RBE No. 101/2018

New Delhi, Dated: 13.07.2018

No. F(E)Spi./2008/ADV.J/6 (7th CPC)

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

Subject : Grant of Advances – Seventh Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants.

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject,vide which, the revised rules relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing-III Section) vide their OM No.I.17011/11(4)/ 2016-H-III dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Further clarifications were issued vide this Ministry’s letter of even number dated 28.03.2018 and 27.04.2018.

3. Ministry of Housing & Urban Affairs vide their OM dated 29.06.2018 have now issued instructions regarding applicability of rules contained in their OM dated 09.11.2017 with effect from 01.01.2016 and enhancement of House Building Advance (HBA) in those cases which were sanctioned on or after 01.01.2016 but before 09.11.2017 and these are subject to conditions mentioned in their letter of 29.06.2018. A copy of the same is sent herewith, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt.

4. Hindi version will follow.

(G.Priya Sudarsani)
Joint Director Finance (Estt.)
Railway Board

Encl.: As above
No. F(E)Spi./2008/ADV.J/6 (7th CPC)
New Delhi, Dated: 13.07.2018

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Be the first to comment - What do you think?  Posted by admin - July 16, 2018 at 5:00 pm

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Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases regarding

Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases

I-17011/11(4)/2016-H.III

Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated : 29.06.2018

OFFICE MEMORANDUM

Subject: Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases regarding.

The undersigned is directed to invite attention to this Ministry’s OM No. I- 17011/11(4)/2016-H.III dated 09.11.2017 on the above-mentioned subject and to say that it has been decided in consultation with Ministry of Finance to make the aforesaid orders applicable with effect from 1st January, 2016. Accordingly, it has been decided that an enhancement of House Building Advance, if applied for, would be granted to government employee for an amount equivalent to the difference between the previously sanctioned amount and the new eligible amount determined on the basis of basic pay as per 7th CPC, in past cases, where HBA was sanctioned on or after 01.01.2016 but before 09.11.2017 subject to complying following conditions :

a) The Government employee should not have drawn the entire amount of HBA sanctioned under earlier orders and/ or where construction is not completed/full cost towards acquisition of house/ flat is yet to be paid.

b) There will be no deviation from the approved plan of construction on the basis of which the original sanction of House Building Advance was accorded. The revised cost of the original plan can, however, be considered for determining the additional amount, subject to the prescribed maximum limits.

c) Supplementary Mortgage Deed, Personal Bond and Sureties will be drawn and executed at the expense of the loanee.

d) The actual entitlement will be restricted to the repaying capacity computed on the basis of the formula laid down in this Ministry’s OM No I-17011/11(4)/2016-H.III dated 09.11.2017. It should be ensured that the entire amount of advance with interest is recovered before retirement of the Government servant

e) Rate of interest:

The rate of interest will be at 8.50% from the financial year 2017-18 onwards. This will be reviewed every three years to be notified in consultation with Ministry of Finance. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement of HBA, i.e., the unpaid portion of previously sanctioned HBA plus the enhancement so granted. Thus, the amount of HBA that has already been re-paid on old rates will not attract the fresh interest charges.

2. However, the existing limit of maximum admissible amount of Rs. 25 lakhs for the purpose of construction/ purchase of new house/ flat and Rs. 10 lakhs for expansion of existing house/ flat would remain unchanged. In other words, the sum total of previously, sanctioned House Building Advance and the enhancement granted under these orders cannot exceed the aforesaid limits. In any case, not more than one enhancement is admissible to a Government employee.

3. The applications for enhanced House Building Advance should be submitted within six months from the date of issue of this order.

4. Ministries/ Departments with branch offices in the far-flung areas are be advised to give wider publicity to these orders through modern communication means so that there is no occasion for any representation for extending the time limit of six months on the grounds of late receipt of these orders.

5. This issues in supersession of all the earlier orders on the subject.

S/d,
(Shailendra Vikram Singh)
Director (IFD)
Tel: 23062798

To,
All the Ministries and Departments of the Government of India as per standard distribution list.

Be the first to comment - What do you think?  Posted by admin - July 6, 2018 at 9:04 am

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Small Family Norms in House Building Advance Rules 2017 as per the 7th Central Pay Commission Recommendations

NFIR: Small Family Norms in House Building Advance Rules-2017 as per the 7th Central Pay Commission Recommendations

House Building Advance Rules 2017 as per the 7th Central Pay Commission

Government of India (Bharat Sarkar)
Ministry of Railway (Rail Mantralaya)
(Railway Board)

PC-VII No.:102/2018
RBE No.63/2018

New Delhi, Dated 27-04-2018

No.F(E)Spl./2008/ADV.3/6 (7th CPC)

The General Managers and PFAs
All Indian Railways & Production Units
(As per Standard List)

Subject: Small Family Norms in House Building Advance Rules-2017 as per the 7th Central Pay Commission Recommendations.

A copy of Ministry of Housing & Urban Affairs (Housing-III section)’s OM No.I.17011/11(4)/2016-H-III dated 31.01.2018 pertaining to small family norms in HBA rules-2017 is sent herewith for applying mutatis-mutandis to Railway Employees. As per the said OM, interest rebate avaliable to HBA beneficiaries for promoting small family norms shall cease to exist with effect from 01.07.2017. Ministry of finance’s OM dated 07.07.2017 cited in the aforesaid MoH&UA’s OM dated 31.01.2018 has already been circulated by pay commission directorate vide Board’s letter No.PC-V/2017/A/FPA/1 dated 28.07.2017 (RBE No.77/2017)

Encl: as above

S/d,
(G.Priya Sudarsan)
Joint Director Finance (Estt.)
Railway Board

I-17011/11(4)/2016-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing -III Section

Nirman Bhawan, New Delhi
Dated: 31.01.2018

OFFICE MEMORANDUM

Subject: Small Familly Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC- reg.

The undersigned is directed to invite attention to Ministry of Finance’s OM No.12(4)/2016-EIII.A dated 7th July 2017 on the above mentioned subject and to say that interest rebate available to HBA beneficiaries for promoting small family norms shall cease to exist with effect from 01.07.2017

S/d,
(shallendra Vikram singh)
Director (IFD)
Tel: 011-23062798

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - May 16, 2018 at 5:37 pm

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7th CPC HBA – Amendment to Rules on House Building Advance

7th CPC HBA – Amendment to Rules on House Building Advance

Grant of Advances- Seventh Central Pay Commission recommendations- Amendment to rules on House Building Advance (HBA) to Railway servants

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

No. F(E)Spl./2008/ADV.3/6 (7th CPC)

New Delhi, Dated: 28.03.2018

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

Subject: Grant of Advances- Seventh Central Pay Commission recommendations- Amendment to rules on House Building Advance (HBA) to Railway servants.

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject, vide which, the revised provisions relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing-Ill Section) vide their OM No.l.17011/11 (4)/2016-H-111 dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Ministry of Housing & Urban Affairs vide their OM dated 31.01.2018 (copy enclosed) have now issued clarifications to the fulfilment of extant conditions mentioned in para-2(viii) of their aforesaid OM dated 09.11.2017, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt.

4. Hindi version will follow.

sd/-
(G. Priyt Sudarsani)
Joint Director Finance (Estt.)

Railway Board

Source: AIRF

Be the first to comment - What do you think?  Posted by admin - May 14, 2018 at 3:26 pm

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Grant of Advances 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

7th CPC : Amendment to rules on House Building Advance (HBA) to Railway servants.

7th-CPC-House-Building-Advance-HBA-Railway-servants

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

No.F(E)Spl./2008/ADV.3/6(7th CPC)

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

New Delhi,
Dated:28.03.2018

Subject: Grant of Advances Seventh Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants.

 

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject(vide which, the revised provisions relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing III Section) vide their OM No.1.17011/11(4)/2016-H-III dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Ministry of Housing & Urban Affairs vide their OM dated 31.01.2018 (copy enclosed) have now issued clarifications to the fulfillment of extant conditions mentioned in para-2(viii) of their aforesaid OM dated 09.11.2017, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt

4. Hindi version will follow.

S/d,
(G.Priya Sudarsani)
Joint Director Finance (Estt.)
Railway Board

 Source: NFIR

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Be the first to comment - What do you think?  Posted by admin - April 8, 2018 at 10:12 pm

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Small Family Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC

Small Family Norms in House Building Advance Rules 2017 as per the recommendations of 7th CPC

Government of India
Ministry of Housing & Urban
Housing – III Section

Nirman Bhawan, New Delhi,
Dated 31.01.2018

Office Memorandum

Subject: Small Family Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC- reg.

The undersigned is directed to invite attention to Ministry of Finance’s 0M NO. 12(4)/2016-EIII.A dated 7th July 2017 on above mentioned subject and to say that interest rebate available to HBA beneficiaries for promoting small family norms shall cease to exist with effect from 01.07.2017.

(Shailendra Vikram Singh)
Director(IFD)

Authority: www.pcdapension.nic.in

Be the first to comment - What do you think?  Posted by admin - February 12, 2018 at 3:28 pm

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Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions

Migration of Home Loan to Revised HBA – Ministry of Housing & Urban Affairs

Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions

1-17011/11(4)/2016-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated:31.01.2018

Office Memorandum

Subject: Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions – reg.

Kind attention is invited to para 2(viii) of this Ministry’s OM. No. l- 17011/11 (4)/2016-H.III dated 09.11-2017 on the above-mentioned subject regarding fulfilment of extant conditions, extant conditions are clarified as follows.

a) Before granting such House Building Advance. the Head of the Department

i) Should satisfy himself that the home loans were taken by the government employee entirely for purpose of construction / purchase of new house/ flat.

ii) Should ensure that the House Building Advance sanctioned is to tie amount of loan still due to be repaid by the government employee

b) House Building Advance can be availed towards repayment of bank loan taken for the purpose of construction/ purchase of new house/ flat.

C) Employee shall be eligible for grant Of House Building Advance on the date she obtained loans from banks and other financial institutions, irrespective of whether they applied for House Building Advance before raising he loan.

d) House Building Advance fry repayment of loans Shall be granted to the Eligible employees in one lump sum. However, the Government employee shall produce the HBA Utilisation Certificate within one month the date of release of HBA

e) Employee has to satisfy tie other provisions of the House Building Advance Rules -2017.

(Shailendra Vikram Singh)
Director(FD)

Authority: www.mohua.gov.in

Be the first to comment - What do you think?  Posted by admin - at 3:26 pm

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House Building Advance 2017

House Building Advance 2017

House Building Advance 2017 - Central Government Employees

The Government has revised the House Building Advance (HBA) rules for Central Government Employees incorporating the accepted recommendations of the 7th Pay Commission. Following are the salient features of the new rules:

1. The total amount of advance that a central government employee can borrow from government has been revised upwards. The employee can up to borrow 34 months of the basic pay subject to a maximum of Rs. 25 lakhs (Rs. Twenty Five Lakhs only), or cost of the house/flat, or the amount according to repaying capacity, whichever is the least for new construction/purchase of new house/flat. Earlier this limit was only Rs.7.50 lakhs.

2. Similarly, the HBA amount for expansion of the house has been revised to a maximum of Rs.10 lakhs or 34 months of basic pay or cost of the expansion of the house or amount according to repaying capacity, whichever is least. This amount was earlier Rs.1.80 lakhs.

3. The cost ceiling limit of the house which an employee can construct/ purchase has been revised to Rs.1.00 crore with a proviso of upward revision of 25% in deserving cases. The earlier cost ceiling limit was Rs.30 lakhs.

4. Both spouses, if they are central government employees, are now eligible to take HBA either jointly, or separately. Earlier only one spouse was eligible for House Building Advance.

5. There is a provision for individuals migrating from home loans taken from Financial Institutions/ Banks to HBA, if they so desire.

6. The provision for availing ‘second charge’ on the house for taking loans to fund balance amount from Banks/ Financial Institutions has been simplified considerably. ‘No Objection Certificate’ will be issued along with sanction order of HBA, on employee’s declaration.

7. Henceforth, the rate of Interest on Housing Building Advance shall be at only one rate of 8.50% at simple interest (in place of the earlier four slabs of bearing interest rates ranging from 6% to 9.50% for different slabs of HBA which ranged from Rs.50,000/- to Rs.7,50,000/-) .

8. This rate of interest shall be reviewed every three years. All cases of subsequent tranches/ installments of HBA being taken by the employee in different financial years shall be governed by the applicable rate of interest in the year in which the HBA was sanctioned, in the event of change in the rate of interest. HBA is admissible to an employee only once in a life time.

9. The clause of adding a higher rate of interest at 2.5% (two point five percent) above the prescribed rate during sanction of House Building Advance stands withdrawn. Earlier the employee was sanctioned an advance at an interest rate of 2.5% above the scheduled rates with the stipulation that if conditions attached to the sanction including those relating to the recovery of amount are fulfilled completely, to the satisfaction of the competent authority, a rebate of interest to the extent of 2.5% was allowed.

10. The methodology of recovery of HBA shall continue as per the existing pattern recovery of principal first in the first fifteen years in 180 monthly instalments and interest thereafter in next five years in 60 monthly instalments.

11. The house/flat constructed/purchased with the help of House Building advance can be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority (IRDA).

12. This attractive package is expected to incentivize the government employee to buy house/ flat by taking the revised HBA along with other bank loans, if required. This will give a fillip to the Housing infrastructure sector.

PIB

Be the first to comment - What do you think?  Posted by admin - November 9, 2017 at 7:00 pm

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HOUSE BUILDING ADVANCE for Central Government Employees

HOUSE BUILDING ADVANCE

Housing Loan for Central Government Employees…

General Rules for HBA :-

The advance granted to all permanent Central Government Employees.

The advance granted, who has completed minimum 10 years continuous service.

The advance granted for construction / purchase of house / plot.

The advance granted for purchase of ready-built house / flats.

The advance granted for buying a plot or flat under Co-operative Schemes.

The advance granted for enlarging existing accommodation.

The advance granted for purchase of houses / flats under Self Financing Housing Schemes and Co-operative Group Housing Schemes.

General Conditions for HBA :-

Employees should not have availed of any loan or advance for the purpose from any other Government sources.

Employee or spouse or minor child should not already own a house.

Cost Ceiling :-

Cost of the house (excluding cost of the land) should not exceed 134 times of the Basic Pay, subject to a minimum of Rs.7.5 lakhs and a maximum of Rs.18 lakhs. (If both husband and wife are working central government services, the pay of both of them will be taken into consideration for calculating the cost ceiling).

Sanction Amount :-

The amount of House Building Advance admisssiable for employees is 34 times of the Basic Pay or Rs.7.5 lakhs or cost of the building or repaying capacity, whichever is least.

RATE OF INTEREST :-

(Note: No interest is chargeable beyond the date of retirement / death of the Government Servant.)

HBA

sanctioned amount

26-7-90 to

15-12-97

16-12-97 to

31-3-2001

1-4-2001 to

31-3-2002

1-4-2002 onwards

Rs. 25,000/-

7.5%

7.5%

6.5%

6%

Rs. 50,000/-

7.5%

7.5%

6.5%

6%

Rs. 75,000/-

9%

9%

8%

7.5%

Rs. 1,00,000/-

9%

9%

8%

7.5%

Rs. 1,25,000/-

10%

9%

8%

7.5%

Rs. 1,50,000/-

10%

9%

8%

7.5%

Rs. 2,00,000/-

11%

11%

10%

9.5%

Rs. 2,25,000/-

11.5%

11%

10%

9.5%

Rs. 2,50,000/-

12%

11%

10%

9.5%

Rs. 5,00,000/-

….

11%

10%

9.5%

Rs. 7,50,000/-

….

12%

11%

10.5%

(Note: The advances carry interest from the date of payment of the first installment and is calculated on the balance outstanding on the last day of each month.)

Income Tax Rebate for HBA :-

Repayment of Principal sum of H.B.A. is exempt u/s 88 of Income Tax Act.

Exemption for Interest portion of HBA is admissible up to maximum of Rs. 1,50,000/-.

If any individual has drawn House Building Loan from any other financial institution, at the end of the year he should obtain a certificate from that financial institution showing repayment of loan details. In that repayment of Principal sum and Interest portion should be clearly mentioned. Accordingly income tax rebate can be taken on principal sum and interest sum.

Interest is calculated on the balance of HBA outstanding on the last day of the month i.e. on the IBB just like calculation of interest on advance for purchase of conveyance, etc.

Interest on H.B.A. is exempt u/s 24(b) of Income Tax Act.

Family Planning Concession for HBA: –

Concessional interest to Central Government Employees for promoting Small Family Norms. – The rate of interest will be half per cent less for an employee who undergoes sterlization.

Be the first to comment - What do you think?  Posted by admin - September 30, 2015 at 11:13 am

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Rules for House Building Advance (HBA) for Indian Railway Employees

House Building Advance (HBA) for Indian Railway Employees

HBA is admissible to :

  •  A Permanent railway employee or a temporary Railway employee with 10 years of service.
  •  Officers of all India services (IAS, IPS, IFS) on deputation to the Railways continuously for 6 years.
  •  If both Husband and wife are Railway employees, advance is admissible to any one of them. Where a house-site is owned jointly by husband and wife, amount will be sanctioned only if both agree to mortgage the same to Government.
  • If both Husband and wife are Government Servants, the pay of both of them will be taken into consideration for calculating the ceiling limit.
  • A Railway employee under suspension may be granted HBA on furnishing collateral security in the shape of mortgage bond from two permanent Railway employees.

HBA is granted for the following purposes:

  • Purchase of a plot for construction of a house.
  • Construction of a house on a plot already owned by a Railway employee or jointly with his/her spouse.
  • Enlargement of an existing house.
  • Purchase of a ready built house of flat.
  • Repayment of loan taken from Govt/private sources for constructing a house.

Cost ceiling

  •  134 times pay in Pay Band subject to a minimum of 7.5 Lakh and maximum of 30 Lakhs.

Amount of Advance

  • 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 or the actual cost or repaying capacity whichever is less.
  • For enlargement of an existing house, 34 times the Basic Pay + Grade Pay or Rs. 1,80,000 or the actual cost whichever is less.
  • In case of construction of a house in rural area, the amount of advance is 80% of the actual cost of construction and land.
  • For purchase of plot/land and mount not exceeding 20% of advance in case of single storied and 15% in case of double storied is permitted.

Rate of Interest

Upto Rs. 50,000                 5%

Upto Rs. 1,50,000             6.5%

Upto Rs. 5,00,000             8.5%

Upto Rs. 7,50,000             9.5%

 

  • Penal interest of 2.5% for violating conditions.
  • 0.5% reduction for promoting small family norms.
  • Rate of interest prevalent on the date of release of advance/first instalment shall be applicable.

Recovery

Principal               –    180 months

Interest                 –    60 months

Purchase of land and construct house – The following month of completing construction or 24 months after granting first installment whichever is earlier.

Construction of house – The following month of completing construction or 18 months after granting first installment whichever is earlier.

Source:  Indian Railway Employee

Be the first to comment - What do you think?  Posted by admin - October 6, 2013 at 3:15 pm

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House Building Advance – Enhancement of ceiling of House Building Advance from Rs.15 to Rs.25 lakhs in Tamil Nadu

House Building Advance – Enhancement of ceiling of House Building Advance from Rs.15 to Rs.25 lakhs in Tamil Nadu

Tamil Nadu Government has decided to increase the ceiling of House Building Advance to its employees from 15 lakhs to 25 lakhs, due to escalation in the cost of land and building materials.

An important abstract order issued from Finance Department of Tamil Nadu on 20.6.2012 regarding enhancement of ceiling of Housing Loan to State Government employees and officers. The Government Order says,  ‘the ceiling on House Building Advance to the Government Servants was lastly revised in the year 2009.

At this distance of time, considering the escalation in the cost of land and building materiel, the Hon’ble Minister for Finance, in the Budget Speech for the year 2012-2013, has announced enhancement of the present House Building Advance ceiling from Rs.15 lakhs to  Rs.25 lakhs to Government Employees. Further, the Government have also considered enhancement of House Building Advance ceiling from Rs.25 lakhs to Rs.40 lakhs to All India Service Officers. The Government after careful examination have decided to enhance the existing maximum ceiling of House Building Advance as above’.

Be the first to comment - What do you think?  Posted by admin - June 22, 2012 at 5:06 am

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Foreclosure charges / Pre-payment penalties on Housing Loan

Foreclosure charges / Pre-payment penalties on Housing Loan

Pre-Payment Penality on Home Loans
Reserve Bank of India (RBI) in its monetary policy, during 2012-13 has announced not to permit banks to levy foreclosure charges/pre-payment penalties on home loan on a floating interest rate basis.
Further, National Housing Bank (NHB) which regulates the Housing Finance Companies (HFCs) have advised them not to levy pre-payment charges on the borrowers where the housing loan is on floating interest rate basis. Further, NHB has also advised the HFCs not to levy any pre-closure charges even where the housing loan is on fixed interest rate basis and the loan is pre-closed by the borrowers out of his own sources.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

Be the first to comment - What do you think?  Posted by admin - June 13, 2012 at 1:00 pm

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