Banks offer numerous types of loans to their clients. These loans are formulated according to the needs of customers for example personal loan, car loan, home loan, business loan, etc. Rules for availing such loans have been set up by the bank. Such loan offers are made available to the general public on the basis of their CIBIL score.
However, some people prefer taking loans by other methods. This is where the Reserve Bank of India has made a huge significant contribution to the borrower’s home loan. It is going to tell what that contribution is.
RBI action on home loan
Actually, many customers taking home loans have worries about the banking process. The bank grants loans taken from customers not based on CIBIL scores but against property papers or against any FD or gold. Even after repaying the full loan, many a time they must run around banks for weeks to get their property papers back.
RBI issued instructions
Now, RBI has come up with specific guidelines to ensure that the interests of those types of customers are protected. These instructions are primarily meant for NBFCs and those mini banks that tend to delay in returning customers’ documents or property. In such a situation, banks will have to pay a heavy penalty to the customers. In other words, such banks will also pay penalty to customers equivalent to the period of delay.
What did RBI say
According to the Reserve Bank of India, delayed transfer of property documents to customers by banks, NBFCs or any other financial institutions shall attract payments to such customers. Such directive is viewed as extremely significant by RBI. It is also viewed as a huge relief to the customers availing home loan facilities.
In how many days will the documents have to be returned
According to RBI norms, after realizing the full loan amount, an individual customer is supposed to return the properties within a month’s time (i.e., within 30 days) of realizing these amounts. Otherwise, he/she, too, might have to pay compensation.
Let us tell you that the penalty is levied against banks at the rate of Rs 5000 a day. Hence, if a bank or financial institution does not return the papers to the customer within two months from repayment of the loan, then the bank would also be giving Rs 150000 to that customer along with the papers.
What benefit did the customers get?
The main thing about this instruction directly benefits the users because earlier they had to go through long waiting times in banks and their offices in order to access the papers of their own properties. There were and are no penalties or fines for it, thus banks did not seem attached to such work. Furthermore, RBI often receives complaints regarding this.
