Home loan, other borrowers can switch to fixed-rate regime: RBI

Dated on: Friday 11th August 2023

On Thursday, the Reserve Bank announced its intention to introduce a system that permits borrowers to transition from a floating interest rate to a fixed interest rate. This initiative aims to alleviate the financial burden faced by borrowers of various types of loans, such as home and auto loans, who are currently grappling with the repercussions of high interest rates. During the unveiling of the bi-monthly monetary policy, Shaktikanta Das, the Governor of the Reserve Bank, explained that this forthcoming framework will require lenders to effectively communicate important details regarding the loan tenure and equated monthly installment (EMI) to the borrowers.

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