The Reserve Bank of India (RBI) is ushering in new measures, encouraging banks and NBFCs to offer you more control over your loans.
What does this mean for you?
Rate Transition Options: Borrowers can transition from a floating rate to a fixed rate during a loan reset.
Payment Flexibility: Borrowers can either enhance their Equated Monthly Instalments (EMIs) or prolong the loan tenure. Additionally, provisions for partial or complete prepayments are available at any stage of the loan.
Communication Protocols: Borrowers will be systematically informed about these new options. Any alterations to the interest rate or monthly obligations will be promptly communicated.
Clarity on Charges: Before transitioning between interest rates, banks will disclose any related fees. A detailed loan sanction letter will also elucidate all associated costs.
Periodic Financial Updates: Every quarter, borrowers will be furnished with a concise statement outlining the principal repaid, outstanding EMIs, and the current interest rate.
The banks and NBFCs get time till December 31, 2023, to extend these options to existing and new loan borrowers.
