NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, August 21, 2014

Reserve Bank Deputy Governor R Gandhi today asked lenders to be more financially innovative in designing home loan products and suggested creation of a periodic deposit-linked facility.

“There is a need with respect to financial innovation, with respect to loan products. One such product would be savings-induced home loans or a home loan deposit,” Gandhi told a gathering of realty players here.

Gandhi, who handles banking operations and development at the central bank, said such a product will help lenders understand their customers in a better way on parameters like repayment capacity and also make the margin money available for the property purchase.