Mumbai, Oct 22: Reserve Bank of India has given the freedom to banks to sanction consumer loans even below the Prime Lending Rate (PLR), regardless of the size of loan. This relaxation would also apply to loans and advances to individuals against shares, debentures/bonds and other non-priority sector personal loans, RBI said in a circular here today.
Banks should, however, have transparent and objective policy approved by their boards in this regard, the apex bank added.
RBI in August had advised banks not to charge rates below PLR, regardless of size of the loans.
Bureau Report