Banks can now cut your loan rates sooner
The Reserve Bank of India just rolled out new rules to help banks pass on rate cuts more quickly.
Now, banks can lower the extra charges on floating-rate loans even before the old three-year waiting period is up.
That means if interest rates fall, your EMIs could go down sooner, saving you money.
Plus, when your loan resets, you'll have the option to switch to a fixed-rate loan if you want—no pressure.
Gold loans and other changes
RBI also updated gold loan rules so banks and co-op banks can lend against gold for any business—not just jewelers.
They've tweaked capital rules too, making it easier for banks to raise funds abroad.
And they actually want your thoughts: public feedback is open until October 20 on proposals like longer repayment time for gold loans and better data sharing with credit bureaus.