EMI Rules: RBI has issued clear instructions regarding the date of repayment of bank loan. The central bank has said that the bank will have to clearly write the repayment and due date in the loan agreement. According to the existing rules, if the loan is not repaid on the date fixed by the bank, then it is considered as overdue. RBI has said that banks, NBFCs or other lending institutions should clearly mention the exact date of repayment, frequency of repayment and break-up of principal amount and interest in the loan agreement. Apart from this, they will also have to mention the Special Mention Account (SMA) and Non-Performing Account (NPA) classification dates.
‘The customer should know what the terms of the loan are’
RBI has said that the borrowers should be clearly told by the bank what is their loan repayment date. This thing should be told at the time of issuance of loan and even after there is any change in it. The customer should know what are the terms and conditions of the loan or the terms and conditions as per the loan agreement. RBI has said that while issuing new loans, these instructions should be strictly followed. Steps should be taken to comply with these instructions before 31st December 2021.
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Banks should make customers aware about the terms and conditions
In fact, it has been seen for some time that sometimes the exact date of repayment of the loan is not mentioned on the loan agreement. This creates the possibility of different interpretations regarding loan repayment dates. RBI has said that banks and other lending institutions should explain SMA, NPA classification with examples on their website to make borrowers aware of the terms and conditions and to make them aware.
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