Finance minister Nirmala Sitharaman assured measures to ensure revival of economy, cheaper loans for home, vehicles and consumption goods. Banks to pass on RBI rate cut benefits to borrowers through MCLR reduction.
New Delhi: Finance minister Nirmala Sitharaman announced a slew of measures to ensure that loans for home, vehicles and consumption goods become cheaper and widely available through banking and non-banking finance companies.
Banks will pass on RBI rate cut benefits to borrowers through MCLR reduction, she said while addressing the media.
"Banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly instalments for housing, vehicle and other retail loans," she said.
Sitharaman announced additional liquidity support of Rs 20,000 crore to housing finance companies (HFCs) by the National Housing Bank (NHB). Thus now the total support has been increased to Rs 30,000 crore.
The Centre also announced partial credit scheme for purchase of pooled assets of non-banking finance companies and HFCs up to Rs 1 lakh crore to be monitored at highest level in each bank.
Prepayment notices issued to NBFCs will be monitored by banks.
NBFCs will be permitted to use the Aadhaar authenticated bank 'Know Your Customer' (KYC) to avoid repeated processes, she said. However, government will make necessary changes in PMLA rules and Aadhaar regulations to ease the lending process.
"Working capital loans for industry will become cheaper," minister said.
To reduce harassment and bring in greater efficiency, public sector banks (PSBs) will ensure mandated return of loan documents within 15 days of loan closure. This will benefit borrowers who have mortgaged assets, minister Sitharaman said.
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