Taking a loan from a bank or NBFC is not a new thing to build your home. The repayment of the loan is done through EMI every month. But many times, paying advance EMI, it does not benefit immediately. Keeping this problem of customers in mind, the National Housing Bank (NHB) has changed the rules of home loan.
The NHB has directed Housing Finance companies to pay interest on the amount if the advance EMI is not immediately adjusted. According to the instructions, the housing finance companies will pay interest to the creditor at the same rate if the advance payment is not adjusted immediately. This move of NHB is expected to provide great relief to home loan customers. Sources quoted sources in the ET report that NHB has taken these steps to promote correct lending policies. This will help home loan customers from the burden of non -essential interest.
NHB had to take this step because the creditor does not get the benefit of EMI advance payment immediately. The advance payment made by him is immediately not adjust and goes to secondary or suspense account and remains there. The NHB has advised HFC (Housing Finance Companies) to focus on the quality of borrowers rather than dependent on advance collections to avoid default.
Benefits of new rule
The report quoted a senior official as saying that some finance companies used to take some EMI advances from EWS and LIG creditors to secure their loan, but did not immediately adjust it to the debtor’s account. Now NHB has clearly stated that either companies should release low loan amount or pay interest on advance EMI.
NHB followed RBI’s rules
By issuing this instruction, NHB has followed the RBI rules. In fact, in April last year, the RBI directed to recover interest to make borrowed policies transparent. He had said that the actual date of taking interest should be imposed only from the date of the loan agreement. The central bank found in investigation that many lenders charge interest from customers for a full month, while the loan was given in the middle of the month.
NHB increased strictness
NHB, controlling and monitoring housing finance companies, has become strict against them for some time. In December 2024, NHB directed all HFCs to inform NPA data on the first date of the month due to some lenders delay in registering previous month collections.