As per the development, the bank will now allow existing borrowers to shift their home loan without providing a third-party guarantor, which itself is a cumbersome task. When a buyer shifts from one lender to another, he has to provide a guarantor till the title deeds of the property can be pledged with the bank. That said, finding a guarantor for such a short duration is tough.
The move came as an icing on the cake as the bank has already lowered its interest rates on such loans, at 10 per cent for up to Rs 30 lakh and at 10.15 per cent for loans above Rs 30 lakh.
The bank has also put on offer third home loans at the same rate as regular home loans even as the former is classified as commercial real estate (CRE) as per guidelines of RBI and attracts a higher rate of provisioning at one per cent.