Home loans are provided to customers by nationalised Banks and certain Non-Banking Finance Companies (NBFCs) registered as Housing Finance Companies (HFCs). All of these institutions are regulated by the Reserve Bank of India (RBI). However, the interest rate on home loans charged by HFCs is higher than banks.
According to Finance Minister Nirmala Sitharaman, HFCs charge higher interest rates as they typically raise funds from the market or other lenders. In contrast, banks get funds at a lower
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