Ahmedabad, Nov 10 : Indian Bank's Association, is expected to come out with its comments on the proposal to do away with pre-payment charges on the home loans in next seven to ten days, IBA Chairman said here today. "We are analysing the issue at the IBA level, we will come out with appropriate suggestions on that may be in next seven to ten days," IBA Chairman M D Mallya told PTI, on the sidelines of 12th Nirma University Convocation here. On being asked that will there be some relief for the home loan borrowers, Mallya, who is also chairman and managing director of Bank of Baroda (BoB) said "You will have to wait for an overall decision from IBA on the issue." After receiving the comments, the RBI will go through it and take a final call on the pre-payment charges on loans taken under floating rates by the customers, a bank official said. RBI, is considering a proposal of imposing a ban on levy of pre-payment charges on loans by banks, and has been waiting for the IBA comments on it. Earlier in September, the Banking Ombudsman had suggested banks should not impose pre-payment charges on loans with floating rate of interest. It had stated that banks may also offer long-term fixed rate housing loans to customers. The housing finance regulator National Housing Bank (NHB) has already directed all housing finance companies(HFCs) to desist from imposing a pre-payment penalty on home loan borrowers. The charges imposed by some HFCs and banks on pre-payment of housing loans are as high as 4 per cent in some cases.
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