RBI diktat on innovative housing loan products and upfront disbursal of loan
Updated as per RBI master circular dated April 2, 2024 According to the RBI master circular, the Central Bank has been observing that some banks have introduced certain innovative Housing Loan Schemes in association with developers/builders, such as upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages…
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Meaning of reset clause in Bank loan rates
A home loan interest rate reset clause allows the lender to review the interest rate after a certain period, as per the occurrence of a scheduled reset date of the loan. A reset rate is the new interest rate that a borrower must pay effective from the scheduled reset date. The lender will provide details…
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Meaning of Margin/down payment in loan explained
The word ‘Margin’ has multiple meanings. In trading percentage of profit is known as margin. The amount we have deposited with the equity brokers is also called margin. When you approach a bank or NBFC for loans like home loans, education loans, personal loans, etc., they do not finance 100% of the value of the…
Read article Teaser rate home loans: Knowing just the amount of the EMI or the interest rate is not good enough
You might have identified a property for purchase that suits your requirements. In my previous article ‘How to examine title deeds of house property?‘ among other things, I suggested that buyers consider important aspects before entering into the sale agreement with the vendor for the purchase of a flat/house. In this post, we will discuss…
Over view: Important pre-sanction home-loan regulations
In light of the observations of the Delhi High Court on unauthorized construction, Banks/FIs before extending credit facilities shall follow the RBI guidelines stated below. . Key steps include: Essential DocumentationSome of the crucial documents involved in a property transaction include: Need for Legal AssistanceGiven the complexity and risks associated with real estate transactions, legal…
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