The story so far: On August 18, apex banking regulator the Reserve Bank of India (RBI) issued guidelines enabling a borrower to transition from a floating interest rate-based loan to one with a fixed interest rate.
According to RBI, the endeavour was to address borrowers’ grievances pertaining to elongation of loan tenure and/or increase in the EMI amount in the event of an increase in the benchmark interest rate. A lack of proper communication along with the absence of consent too formed part of the concerns.
The provisions would be extended to existing as well as new loans by the end of the current calendar year.
