The Reserve Bank of India (RBI) has introduced two measures to assist home loan borrowers. Firstly, banks and NBFCs are now required to clearly communicate how rate changes affect EMIs and loan duration. Borrowers have the flexibility to adjust EMIs, extend repayment, or use a combination of both.
This addresses concerns of excessively long tenures, some extending beyond 50 years due to interest rate hikes. Additionally, as of September 13, banks must promptly return property documents to borrowers after loan settlement. Failure to comply results in a daily penalty of Rs 5,000. These measures empower borrowers to switch to lenders with lower interest rates without concerns of extended repayments or delays in document transfer.