Be it home loan or personal loan, a big update has come for the borrowers of any kind of loan as soon as the beginning of March, RBI has talked about removing the interest on the loan. Let’s know the whole news in details
Big news related to Reserve Bank of India (RBI) is coming out. The news of relief is coming out for those who have taken home loan, personal loan, car loan from the bank. RBI said that, after taking a loan from someone from the bank, if you do not deposit it on time, or are unable to repay the loan due to some reason, then Penal Interest was imposed on the loan defaulter. , which has been proposed to be stopped. Now, instead of penal interest, penal charges will be imposed on the defaulter.
RBI has made a plan
RBI has taken this step to help the customers who have taken loan from the bank. RBI says that, in case of any default in the loan on the borrowers from the bank, a panel charge (punitive fee) will be imposed in place of panel interest (penal interest). RBI said that this will apply to the default on delay in filling the loan. If he is found violating the terms of the bank loan agreement, then he will have to pay a penalty in a transparent manner, which will be recovered by the bank as a panel charge. This proposal has come into effect from February 8, 2023. RBI also said that ‘the panel charge will be further added to the rate of interest’. There will be no capitalization of panel charge. (i.e., it will be recovered separately and will not be added to the principal outstanding).
The borrowers used to face problems,
RBI said that- this leads to a decline in the credit profile of the loan borrowers. Regulated entities will be free to change the credit risk premium under the extant guidelines on the interest rate. RBI said, “The intention of penal interest essentially reflects negative. Due to this, the borrowers have to face trouble.”
You can get information from here
After many reviews like RBI has taken this decision. In some cases customer complaints and several disputes have come to the fore. RBI has released the major guidelines related to this draft on its official website. From where you can read it.
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