- RBI to facilitate conversion of floating rate of interest to fixed rate of interest
Here is a piece of good news for borrowers of various loans as the Reserve Bank of India has decided to facilitate conversion of the floating rate of interest to the fixed rate of interest on home loans, auto loans and several other loan products. This will bring a great relief to the borrowers of loans.
The RBI announced that it will soon declare the policy of converting the floating rate of Interest to the fixed rate. Under the policy the banks are required to inform the borrowers the tenure of the loan, EMIs and other information. The RBI will issue guidelines on ensuring more transparency in EMI-based floating rate of interest or borrowers switching over to fixed rate of interest or foreclosure of the loans and other issues.
