RBI Rules on Loan: Now those who do not repay the loan will get this special facility, RBI has issued new rules

RBI Rules on Loan: Many people across the country keep taking loans but many times they are not able to repay the loan. Due to this, RBI has given some facilities to those who do not repay the loan. For information, let us tell you that RBI has made some new rules regarding loans. Let us know about these rules of RBI in detail in the news-

If you have taken a loan and are paying the monthly installment (RBI Rules on Loan) or the Central Reserve Bank (RBI) has recently said many new things keeping in mind the borrowers and also implemented some rules, which can make the way of paying the loan a little easier for you.

RBI expressed concern over the practice of banks to distribute loans and increase interest rates (loan interest rate hike) and also made changes regarding penal interest. Let us know in detail here what good news has come for loan takers.

Banks will have to inform when interest rates are increased

Last week, the RBI had asked banks and other lending institutions to provide an option to choose a fixed rate to customers who have already taken a loan when they are fixing new interest rates on their loan products.

RBI issued a notification saying that when banks increase interest rates, they increase the loan tenure or monthly installment (EMI) and the customers are not informed about it properly, nor is their consent taken.

What will the banks have to do?

RBI has asked banks to formulate a proper policy framework in this regard. RBI said that at the time of sanctioning the loan, banks should clearly tell their customers what effect a change in the policy interest rate (Repo Rate) can have on the EMI or the loan tenure.

The increase in EMI or loan tenure should be informed to the customer immediately through proper medium. Also, while deciding the new interest rate, banks should be given the option to choose a fixed rate.

RBI instructions in the interest of customers

According to RBI, banks should also inform customers how many times they will get the option to choose the fixed rate during the loan tenure.

Along with this, the customers taking loan should also be given the option to increase the EMI or the loan period or both. Apart from this, customers should be allowed to repay the loan in full or in part before time. This facility should be available to them at any time during the loan period.

RBI governor Shaktikanta Das, after his monetary policy committee meeting this month, had said that preparations are being made to allow loan borrowers to choose a fixed interest rate from a floating rate. (RBI Rules on Loan) A new framework is being prepared for this, under which banks will have to give clear information to the loan customer about the loan tenure and monthly EMI.

Relief will be given on penalty interest (RBI Rules on Loan)

RBI has also given instructions to banks regarding penal interest. If the customer is unable to repay the loan, then the bank will charge him a reasonable penalty fee and not penal interest or penal interest.

RBI has issued a notification titled 'Fair Credit Practices - Penal Charges on Loan Accounts', according to which banks and NBFCs will not be able to charge penal interest from January 1, 2024.

RBI said that if the customer does not repay the loan as per the terms of the loan, then a penalty can be imposed on him, but this will not be charged as penal interest, because the banks add the penal interest to the interest rates charged in advance.

RBI also said that the penalty fees charged by banks will not be differentiated on the basis of different loans or products. The bank will not capitalize the penalty fees and no extra interest will be calculated on such fees .