The housing finance regulator said Housing Finance Companies will no longer levy any fee on floating rate loans. In case of fixed rate loans, it has made a distinction and only those borrowers who pay from their “own sources”, such as savings or even loans from relatives, will be exempted from payment of penalty. In case borrowers shift to another bank or Housing Finance Companies, the penalty will be applicable. While a similar advisory was issued last October, the NHB has said that any violation will attract penal action.
Please Note above Circular is in respect of Housing Loan from Housing Finance Companies not in respect of Loan from Banks.