Housing loan for pre-2016 borrowers to get cheaper
Posted on: 08/Feb/2018 6:43:12 PM
The Reserve Bank of India has emphasized that the interest rate must be calculated on the MCLR basis from 1st April 2018.
As per this, it seems that there are prospects of a reduction in the interest rate for several people, including those who took the housing loan before 2016.
The banks calculate the basic interest rates on the basis of the interest given by them for deposits and the interest rate for the loan taken by them. In other words, the basic interest rate for the housing loan was decided based on the interest paid by the banks for their loans taken.
There has been a change in this method of calculation of interest rate. The banks have now decided to decide the interest rate for the housing loan based not only on the short-term but also the periodic revenue earned by the banks in various sources of funds. This method of calculation is known as MCLR (Marginal Cost of Lending Rate).
Earlier, additional interest was fixed higher than the basic interest rate. Now, the interest rate is calculated based on MCLR. This system is used for those who have taken housing loans after 1st April 2018.
Meanwhile, the interest rate for those who had taken housing loans before 1st April 2016 is calculated based on the earlier system explained above. Especially for those who are in the ‘fixed interest rate’, the interest is rate is higher than the basic interest rate.
Further, for the housing loans taken before 1st April 2016, the banks fixed the interest rates on an autonomous basis. So, this group had to pay additional interest.
In this situation, the Reserve Bank of India has announced the new interest rate policy and also announcement regarding housing loans as well. As per this, all housing loan interest rates must be calculated on the MCLR basis from 1st April 2018.
Thus, it is gathered that all the banks may decide the interest rates for all types of housing loans on the basis of MCLR. On this measure, the interest rate will be down for those who had availed housing loan before 1st April 2016.
The consultants in the field of housing loans observe that generally, the housing loan is generally taken from the banks as recommended by the construction company or the building agents. However, these people do not go into the details of the interest rate, how it is being collected, whether the banks carry out the modifications as per the orders from the Reserve Bank of India. So, the details regarding the latest concessions do not reach the people who take housing loans as above.
Thus, it is imperative for those who have taken housing loans to visit the banks and get the complete details about the interest rate and confirm the collection of their housing loan interest.
