Taking a bank loan for a home and repaying it is a challenging process. Whenever interest rates rise, the EMIs also increase, adding more burden. However, the RBI is set to implement a new policy that will not be affected by fluctuations in interest rates. Home loan customers will now have the opportunity to switch from the current floating interest rate system to a fixed interest rate system.
Many people save every penny to build or buy their own home, often taking out a bank loan to do so. Home loans are typically taken for long terms ranging from 10 to 30 years. Whether interest rates rise or fall, they have an impact on loan repayments. While it is rare for interest rates to decrease, they have been consistently rising recently. When home loan interest rates increase, banks often extend the duration of the EMIs that need to be paid. In such situations, banks do not provide information to borrowers. As a solution, the RBI has decided to allow borrowers to switch from the floating interest rate system to the fixed interest rate system, as well as permit them to make prepayments on their home loans.
This website uses cookies.