INSUBCONTINENT EXCLUSIVE:
Latest RBI guidelines on loans: The Reserve Bank of India has come out with a new set of guidelines for the way banks and non-banking
financial institutions (NBFCs) can charge borrowers penalty for non-payment and how loan takers can switch from floating interest loans to
fixed interest loans.The new set of rules and guidelines from the central bank also pertain to negative amortization, impacting your EMIs
Bankbazaar.com breaks it down in simple terms so that home loan, car loan and personal loan borrowers can make an informed decision.Home,
to banks on transparent communication to borrowers on switching loans, service charges etc
Banks have also been asked to communicate to loan borrowers what the interest rate hike means in terms of increased EMI and tenure and what
are the rules for prepayment of loans.Additionally, banks have been asked not to charge a penal interest on non repayment of loans
Bank of India has raised the repo rate, a key rate at which the RBI lends to banks, by 2.5% in the last 18 months
The repo rate currently stands at 6.5%
While the Monetary Policy Committee (MPC) has not hiked repo rate in the last policy, given the inflationary pressures and the global
headwinds, interest rates are unlikely to come down anytime soon
In the video above, Adhil Shetty also talks about what should be the loan repayment strategy of an old borrower, and what things a new
borrower should consider.
