The RBI has left it to the discretion of lenders whether they want to provide a choice to borrowers to switch over to a fixed rate at the time of re-set of interest rates on floating rate equated monthly instalment (EMI)-based personal loans.

Further, regulated entities/REs (banks and NBFCs, including housing finance companies) no longer have to mandatorily offer fixed interest rate product in all equated instalment based personal loan categories.

Hitherto, the RBI required the regulated entities/REs (banks and NBFCs, including housing finance companies) to provide a mandatory option to the borrowers, at the time of reset of interest rates on EMI-based personal loans, to switch over to a fixed rate.

“At the time of reset of interest rates, REs may, at their option, provide a choice to t

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