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    HomeNewsBusinessPersonal FinanceExplainer: How RBI’s rules on penal charges will help loan borrowers

    Explainer: How RBI’s rules on penal charges will help loan borrowers

    RBI’s rules on penal charges came into effect April 1. Earlier some banks, NBFCs and HFCs use penal rates of interest over and above the applicable ones, in case of defaults. Now, the RBI guidelines prohibit financial institutions from charging penal rates on loan defaults.

    Hiral Thanawala
    April 03, 2024 / 13:13 IST
    The RBI has prohibited financial institutions from charging penal rates on loan defaults or non-compliance with credit terms.
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