Bank loan: banks re-evaluate loans, home buyers in soup | India Business News
Flat buyers whose loans were sanctioned by banks have been asked to resubmit their new pay stubs new disbursement, to demonstrate that they are capable of paying their EMI. Due to salary cuts and large-scale reductions in companies, banks want to make sure that home buyers can repay their loans in the future.
A major Mumbai-based builder said many of his clients have complained that banks have stopped disbursing loans for the past two months. “There are cases where the bank had already released 20% of a fixed buyer’s mortgage loan, but has now stopped following the block,” he said.
Lenders say their rules require them to determine at disbursement if the borrower is in a position to repay the loan. “If, at the time of disbursement, the borrower considers that his income is not sufficient to pay the monthly installment, he would be interested in leaving the transaction. If you later default at an early stage of the loan (before you can take possession), you will have neither a home nor access to credit to buy a cheapest house“An official from a private bank said.
“Banks are revalidating their clients’ mortgage loans due to salary corrections. Other disbursements have been kept on hold. This has affected many builders because banks are delaying payments to them, “said Ajay Ashar, president of the Housing Industry Chamber of Maharrashtra (Thane). Ashar said he has sold 1,000 apartments under construction, reserved by people who have taken out home loans. “We received regular payments from the banks, but this stopped after the closing,” he said.
Developer and President of CREDAI-MCHI Nayan ShahHe said, “Every mortgage loan of more than Rs 50 lakh is being reassessed, even when two or three disbursements have already been made. The banks do not want to lend or want to support the economy. They want us to pay double the interest so that cover the loss of income from the money they do not lend and they feel liquid to park with RBI. ”
A default on a mortgage loan results in a fall in Credit bureau score that hinders future loans. A spokesperson for HDFC, the country’s largest private mortgage lender, said: “We are not doing something new. We view the latest income statements as part of our normal evaluation process. ”
Another private sector banker said he has asked clients to resubmit their financial details for loans that were sanctioned before closing but were not disbursed, or for construction loans where a substantial portion has not yet been disbursed.
There are also cases where homebuyers have asked banks for a three-month moratorium on their EMIs. In such cases, the bank stopped disbursing money. “Once the moratorium ends, we will evaluate these cases separately,” said a private bank official.
State bank President Rajnish KumarOn the other hand, he has said that SBI had already applied strict eligibility criteria in terms of credit scores when sanctioning loans. Therefore, there was no need to be stricter in loan disbursement, he said. “Most of our borrowers are salaried and we don’t see any stress on the home loan portfolio,” added Kumar.
According to RBI data, the bank’s mortgage loan book fell by Rs 8,255 crore from March 27 to April 24 (when it was at Rs 13.3 lakh crore). Bankers said that while they are still receiving loan repayments, the new penalties have been exhausted and only a few previously approved loan disbursements have occurred during the shutdown.