Go for low EMI, long term: RBI to banks

Nov 09 2012, 21:29 IST
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SummaryFor home loans, banks should charge lower EMIs and increase repayment period: RBI

term housing bonds for channelising the long term resources into the housing sector," the draft said.

The report also noted that lack of liquidity in the Indian securitization market is one of the major factors responsible for lack of popularity for fixed rate loan products.

It also pointed out that substantial increase in EMIs over a period of time has an adverse impact on the repayment capacity of the borrowers which also results in loan

delinquencies.

"In view of this, the aspect of transparency in retail loan products needs significant improvement...," it said.

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