The Reserve Bank of India (RBI) has proposed a new framework aimed at creating more consistency and transparency in how lenders determine interest rates on loans. The draft rules, which are currently open for feedback, focus on both fixed and floating-rate loans, benchmark-linked lending, changes in spreads and how the existing loans are handled. If these changes go through, they could impact home loans, personal loans, MSME borrowers,especially those with floating rate loans. The proposed framework is expected to take effect from April 1, 2027.
