New Delhi: The Reserve Bank on Thursday said it will come out with a framework allowing borrowers to switch to fixed interest rates from floating interest rates.
This move of the RBI will provide relief to borrowers of home, auto and other loans, who are suffering due to the impact of high interest rates.
Reserve Bank Governor Shaktikanta Das said this new framework would be implemented shortly. Under it lenders will have to clearly inform the borrowers about tenor and EMI.
“The framework envisages that lenders should clearly communicate with the borrowers for resetting the tenor and/or EMI, provide options of switching to fixed-rate loans or foreclosure of loans, transparent disclosure of various charges incidental to the exercise of these options, and proper communication of key information to the borrowers,” he said.
The detailed guidelines about this would be issued shortly, he said.