RBI changed the rules
The Reserve Bank of India (RBI) has announced many major changes related to loans to provide relief to the common people. The Reserve Bank of India (RBI) has announced many new changes to make loans easier and soften the rules related to large loans slightly. Out of these changes, three rules will be implemented from October 1, while the remaining four rules are still under consideration.
Now if you have taken a loan at a floating rate, then banks can reduce your EMI even before the lock-in period of three years. You will get the benefit of this directly and your EMI can be reduced. In addition, people who are on fixed rate loans can also be given the option to switch to floating rates. Although this will not be mandatory, the banks can provide this facility if they want. This will provide flexibility to the borrowers and it will be easy to choose the right interest rate according to time.
Gold loan is easy
If you are thinking of taking a gold loan, then there is good news for you, now not only jewelers, but all those who use gold as raw materials, such as small businessmen, artisans etc., they can also take loans from the bank instead of gold. This will make it easier for small industries to raise working capital.
Apart from this, the RBI has also made a proposal that the repayment period of Gold Metal Loan (GML) should be increased from 180 days to 270 days. Also, now non-building jewelery vendors will also be able to use GML for outsourcing. All these changes can prove to be very beneficial for MSME and Jewelery sector.
Banks will get ease of raising capital
RBI has made the way easier for banks to raise funds through offshore markets. Now banks can gather more funds by issuing bonds in foreign currency or rupee. This will strengthen the financial condition of banks and will be able to give more loans. RBI has also proposed a change in rules for foreign bank branches working in India. Now new rules will be applicable on their big loan exposure and inter-group transactions. This will help in reducing the risk.
Credit data will be even more accurate
RBI has suggested that now banks and financial institutions send data to the Credit Bureau every week, earlier it was sent to fortnightly (once in two weeks). This will reduce the mistakes in the credit report of the people and they will be improved in time. Also, the CKYC number will now be included in the report, which will make the process of identity easier.