Borrowers relief from unfair lending practices on interest charging by banks (RBI Cir. 29-04-2024)
Next time you take a loan, keep these things in mind.
(1) Interest is charged to you once the loan has hit your account & not from the date of the agreement or the date of the sanction or the date of the cheque
(2) If the disbursement / repayment is happening in the middle of the month, they don’t charge you interest for the whole month
(3) If you have paid some advance EMIs, that’s adjusted in the further calculations.
RBI has identified many banks not following fair practices.
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