RBI guidelines on floating rate loans

 

 

As per the Reserve Bank of India (RBI) Circular No. RBI/2023-24/55 dated Aug 18, 2023, the options mentioned below are available for the customer, prior to execution of the rate reset

 

  1. Change in tenure of the Loan
  2. Change in EMI of the Loan
  3. Change in tenure and EMI of the Loan
  4. Switch from the existing floating rate of interest to a fixed rate of interest by availing the conversion option. An applicable conversion fee as specified in the transaction documents, will be charged for the same.

 

If the interest rate is being revised for your Loan Account, you can opt for any of the above options before the reset date by visiting any ICICI Bank Loan Servicing Branch or Customer Care. Your request will be processed, basis the option chosen by you or as per the agreed Terms and Conditions. In case no request is received before the reset date, then the rate reset will be executed as per the agreed Terms and Conditions and the same will be intimated post reset.

 

In addition to the above, please note the following:

 

  1. You can go in for part payment of the loan without any part payment charges. The minimum part payment amount should be equivalent to one EMI
  2. You can opt for full prepayment of the loan any time during the tenure of the loan, subject to applicable prepayment charges for fixed rate loans.

    FAQs

    What options are available if the interest rate on my Education Loan changes?

    If the interest rate on your ICICI Bank loan is revised, the bank provides options such as change in tenure, change in EMI, change in both tenure and EMI, and switching from floating to fixed rate of interest, subject to applicable conversion fee. Students can also consider part payment or prepayment options based on the published loan servicing guidance.

    How frequently are Education Loan interest rates revised by banks?

    ICICI Bank may revise Education Loan interest rates as per RBI repo rate revision. If the interest rate is revised for your loan account, you will be notified before the reset date and can opt to change your EMI, change your tenure, change both EMI and tenure, or switch from floating to fixed rate.

    Disclaimer

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