The burden of loan EMI will be reduced, RBI issued guidelines

RBI has issued new guidelines to reduce the ever-increasing difficulties in loan EMI. RBI has said in the notifications that all kinds of information should be given to the customers of the borrower bank while fixing the standard rate.

The way inflation increased in the country after Kovid and to reduce it, the Reserve Bank of India started increasing the interest rates, it has broken the back of the common people. Due to the continuous increase in the EMI of the old loan, the debt burden on the common people is continuously increasing. Whose complaint was continuously reaching RBI as well. Now, to reduce this burden, RBI has prepared new guidelines. RBI has asked other financial institutions along with banks and NBFCs to give the borrowers the option of choosing a fixed rate while re-fixing the interest rates.

RBI has issued a notification on Friday. In this notification, the Central Bank has said that it has been seen that due to increase in the interest rate, the loan term or monthly installment ie EMI is increased and the customers are not properly informed about it nor their consent. is taken. To overcome this concern, the Reserve Bank has asked the units coming under its regulation to make a proper policy framework.

Banks will have to give all kinds of options

RBI said that at the time of loan approval, banks should clearly tell their customers that in the event of a change in the standard interest rate, what could be the effect on the EMI or loan tenure. Information about extension of EMI or loan tenure should be given to the customers immediately through proper channel. The Central Bank said that while fixing the interest rates afresh, banks should give an option to the customers to choose the fixed interest rate. Apart from this, under the policy, the customers should also be told that how many times they will get the opportunity to choose this option during the tenure of the loan. Along with this, the loan borrowers should be given the option of increasing the EMI or the tenure of the loan or both.

RBI Governor had announced in MPC

It has been said in the notification that the customers should be allowed to pay the loan in full or in part before the time. This facility should be available to them at any time during the tenure of the loan. In the monetary policy meeting last week, RBI had talked about allowing borrowers to opt for fixed interest rate from floating interest rate. Reserve Bank Governor Shaktikanta Das had said that a new framework is being prepared for this. Under this, banks will have to give complete information about the loan tenure and EMI to the customers taking the loan.