If you are planning to take a home loan for a second home from bank just have a rethink on the plan. Banks are considering to charge higher for the people who would apply for home loans to purchase a second home. If the cost of the home will cross the Rs 15 to 20-lakh limit, the same higher charges will be applicable on the customers.

The RBI is considering to take such steps to take to reduce the cash inflow into sensitive sectors such as realty, stock markets and consumer durables. Now, according to the report, ICICI Bank is seriously thinking to charge more on home loans for second homes.

ICICI General Manager Rajeev Sabharwal said:

Applications for second homes get filtered and we also charge higher margins of around 25-35 per cent for such loans. This is the measure to discourage second homebuyers, as the credit norms are being tighter for this category now.

Sabharwal said that there were two options before the bank management, one was to charge more for second home loans and the other was to charging less for loans below Rs 15 lakh. Currently, ICICI Bank charges 12 per cent for home loans of Rs 15 lakh.

Earlier, The RBI had recently imposed higher provisioning and risk weights for credit to certain sectors to prevent the ‘overheating’ of Indian economy. According to the reports, first-time home loan borrowers will be unaffected by the differential rates.

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