Home Loan up to Rs.10 lakhs norms expanded
Reserve Bank of India has given another Holi Gift to the Home Buyers. The first holi gift came in form of reduction in repo rate by .25 bps (basis points) fixing repo rate to 7.50 bps but the benefit of this move is yet to be passed to the customers by banks.
The second gift came in the form of easing the home loan norms. Usually banks do not include stamp duty, registration charges and other cost of documentation in the cost of the housing property. But to give a boost to affordable housing, RBI has today expanded the norms for home loan up to Rs.10 lakhs by including stamp duty, registration charges and other cost of documentation in the cost of the housing property.
Stamp duty and Registration Charges, together form around 15% of the cost of the house, this additional cost levy a heavy burden borrowers from economically weaker sections (EWS) and low income groups (LIG).
Further, disbursal of loan installments by banks in case of Government Sponsored Projects, are to be made as per the payment stages prescribed by the Government Authorities, even where the payments sought from the home buyers are not linked to the stages of construction.