tag:blogger.com,1999:blog-18601284.post6755648333122941537..comments2009-10-26T09:44:32.882+05:30Deepak Shenoyhttp://www.blogger.com/profile/04209677935830502120noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-18601284.post-1511554550889159732009-10-25T00:15:22.884+05:302009-10-25T00:15:22.884+05:30Financial freedom, why do banks stand to lose money from housing loans?<br /><br />Loan is for 20 years, at 9%. After 2 years, customer found another bank giving 8%, customer switches to the other bank. The original bank got its 9% for 2 years. How does the bank stand to lose money?<br /><br />It has lost business to a better bank, but that is supposed to be a good thing, right?Bingonoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-2598516623747420722009-10-22T14:46:31.272+05:302009-10-22T14:46:31.272+05:30Just a note on Axis bank car loan that I have availed, they charge 10% fine if closed with in 6 months, and 5% after that. I am sure RBI regulation will help curb such greediness from private banks..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18601284.post-72339256679328463212009-10-20T19:04:47.505+05:302009-10-20T19:04:47.505+05:30Banks need to enforce a prepayment penalty otherwise they will stand to lose money from giving out housing loans.<br /><br />It will be good news though if the mortgage prepayment penalty is really removed.Financial Freedomhttp://sgfinancialfreedom.blogspot.comnoreply@blogger.com