RBI Released a New Notification Today Titled – Fair Practices Code for Lenders – Charging of Interest
Basically Many Banks And NBFCs Were Not Transparent in Charging of Interest .
a) Suppose your loan sanction date or agreement date is 15 April
But you received the loan disbursement on 10 May
In this case, many banks take 15 April as the date for the calculation of Interest
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The disbursement date will be considered from now.
b) Now let’s say you pay EMI on the 12th or even disbursement happened on the 12th of the month
But again few Banks were taking Interest for the whole month and not only the period of loan outstanding
Again, ??? ???? ?? ????.
c) In many cases, Banks were already taking 1 or more EMI Instalments in advance
But they were taking interest in the full loan amount. Not good, right?
So ??? ???? ?? ????
You can’t charge interest on the full amount and only charge on the outstanding loan.
