[NewsOfUse]: Intend to Prepay Your Home Loan? Indian Banks allow You now.

Many Indian banks like the State Bank of India (SBI) and other leading banks are now allowing, and even going to the extent of encouraging vigorously, their home loan customers to prepay their home loan amounts to a certain extent beyond the usual limits prescribed in the agreements that were signed at the time of taking the loans.

In usual circumstances, if a home loan borrower intended to prepay a major chunk of the borrowed sum prior to the agreed time frame (largely known as the annual prepayment limit), the banks used to levy a considerable penalty.

But, with the global financial situation, and the Reserve Bank of India's (RBI) directive to the banks to increase their Repo rate (i.e., the term used to correlate the financial jargon like the rate at which the central bank lends money to banks, and the cash reserve ratio, the percentage of deposits banks must keep with the central banks) following the increasing inflation and markets scenario in India and worldwide. The banks under pressure to increase their cash reserve ratio, have opened this gate of opportunity to get back considerable amounts of funds.

This would give a golden opportunity to many home loan customers who are able to manage some extra money and who would like to reduce their outstanding by prepaying major chunk of the house loan amounts without paying any penalty.

Are you also one of those home loan customers who would like to cash in on this opportunity? If yes, then hurry. Approach your bank and ask for this. Do share with team@bricks-n-mortar.com and its other readers if you find/observe any other advantage or glitch in this approach so that others can also take a correct approach.

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[Filed under "NewsOfUse, PropertyBazaar" category by Team@Bricks-n-Mortar.com]

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