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RBI relaxes restriction on interest rate for consumer loans
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.
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
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