Loan for second home may cost you
more
APRIL 22, 2007: Banks are considering higher
charges for those who applying for bank loan
for their second house or above the limit
of Rs 15 to 20 lakh.
ICICI
Bank consider higher charges for loans
for second home of around 25-35 percent.The
bank continously discourages second home buyers
by tightening the credit norms.ICICI charges
12 percent for Rs 15 lakh.
The Reserve Bank had recently imposed higher
provisioning and risk weights for credit to
certain sectors, among them realty, in a bid
to prevent what it called “overheating”.
However, following a series of rate hikes
combined with a 1.50 per cent increase in
CRR limits in three phases effected by the
RBI since November last, credit flows to sensitive
sectors are beginning to witness a slowdown.
Banks will now have to conduct this exercise
diligently in line with the RBI’s policy
to check retail loans.
Source: indianexpress
