The Reserve Bank of India (RBI) has introduced measures to help home loan borrowers save on interest costs. Banks and non-banking finance companies (NBFCs) are now required to clearly communicate the impact of any rate changes on EMIs and loan tenure to borrowers. This transparency allows borrowers to choose between extending the loan tenure or increasing EMIs based on interest rate fluctuations.
Previously, banks tended to extend loan tenures by default, resulting in higher interest payments over time. Additionally, RBI has directed banks to return property documents to borrowers within 30 days of loan settlement, preventing delays in transferring loans to other lenders offering lower interest rates. These measures empower borrowers to reduce interest costs and switch lenders when needed.