The new set of rules and guidelines from the central bank also pertain to negative amortization, impacting your EMIs and tenure extension. What should borrowers know and what should their strategy be? In this week’s episode of TOI Wallet Talks, Adhil Shetty, the CEO of Bankbazaar.com breaks it down in simple terms so that home loan, car loan and personal loan borrowers can make an informed decision.
Home, Car Loan RBI new guidelines: Latest RBI rules for EMIs, loan switch, penalty explained
Watch the video above to know about RBI’s directions to banks on transparent communication to borrowers on switching loans, service charges etc. Banks have also been asked to communicate to loan borrowers what the interest rate hike means in terms of increased EMI and tenure and what are the rules for prepayment of loans.
Additionally, banks have been asked not to charge a penal interest on non repayment of loans. Watch the video above to understand what RBI’s latest guidelines on penalty charges mean for home loan and other loan borrowers.
The Reserve Bank of India has raised the repo rate, a key rate at which the RBI lends to banks, by 2.5% in the last 18 months. The repo rate currently stands at 6.5%. While the Monetary Policy Committee (MPC) has not hiked repo rate in the last policy, given the inflationary pressures and the global headwinds, interest rates are unlikely to come down anytime soon.
In the video above, Adhil Shetty also talks about what should be the loan repayment strategy of an old borrower, and what things a new borrower should consider.