Housing loans will get one-year cessation: Reserve Bank of India
Posted on: 23/Feb/2016 2:43:21 PM
Reserve Bank of India (RBI) has announced that home loan repayment can be made after one year for the flood affected people. A PIL was moved in the Madras High Court by M. Hyder Ali seeking a direction to the RBI to issue an order/circular to all banks in Chennai, Kancheepuram, and Thiruvallur districts exempting those who availed themselves of loans from paying the EMI for next six months and also not to levy any penal interest for six months in view of the recent deluge.
RBI told the first bench of Chief Justice Sanjay Kishan Kaul and Justice M M Sundresh that it had asked bankers in the state to reschedule existing loans with one year moratorium, besides offering top up loan amounting to 25 percent of the loan amount with a ceiling of 5 lakh.As for vehicle loans, the existing loans would be rescheduled with six-month moratorium.
The bench said RBI`s stand would fulfill the proposal of the PIL-petitioner.
