RBI Tightens Grip On Home Loan EMIs

What difference would it make? Keep reading >>>

RBI's New Rule:

Banks must offer fixed-rate loan option during interest rate reset, ensuring EMI covers higher rates

EMI Calculation Changes:

Lenders must assess repayment capacity at elevated rates, preventing loans from becoming burdensome

Lender Responsibility

RBI aims to prevent banks from extending loans excessively after rate hikes, considering borrower's age and capacity

Transparency Mandate:

New norms effective Dec 31, 2023, demand lenders disclose key loan details, enhancing transparency

Impact and Future

These rules influence various loan types, including property and education loans; focus shifts to affordable home loans


RBI's changes aim to protect borrowers and ensure transparency, while lenders adapt to a changing interest rate landscape