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The central bank has also asked the banks and NBFCs to provide those borrowers an option to increase Equated Monthly Instalment (EMIs) or tenure or prepay the full amount or a part of it at any point during the tenure. This move is likely to provide relief to floating-rate borrowers of home, auto, and other loans reeling under the impact of high interest rates. ....
RBI asks banks to be more transparent in resetting of interest and EMIs of floating rate home loans under external benchmark based lending rate. The banking regulator has also asked the banks to offer the borrowers an option to switch to floating rate. The banking regulator has also asked the banks to be refrain from changing the tenure unreasonably without borrower s consent. ....