CODE OF CONDUCT FOR HOME LOAN FOR LENDER

Homeowners and potential buyers can now look forward to a better deal from their lenders. The regulator for Housing Finance Companies (HFCs) - the National Housing Bank (NHB) - has directed them to provide sufficient notice to customers before hiking interest rates or prior to introducing new charges. Like banks, HFCs will now have to adopt a fair practices code for dealing with customers. NHB wants HFCs to notify customers 30 days before raising charges or introducing new ones. Any change in the terms and conditions of a loan agreement, carried out without notice, would also have to be notified within 30 days. If the new changes are to the disadvantage of the customers, they should be allowed to close or switch accounts without paying any charge or interest. A customer can then exit without giving any notice within 60 days.