New Loan Rule by RBI Explained, Boost for Borrowers

RBI's new rule charges interest only on actual loan disbursement days, reducing unfair practices.

Loan Cost Impact

Interest is charged only on outstanding balance, not for the entire month, lowering loan costs.

Bank Processing Fees

SBI charges 0.35% of the loan amount + GST, HDFC up to 1%, ICICI 0.50% - 2%.

Prepayment Charges

HDFC: No prepayment charges for individuals. ICICI: Varies by loan type and purpose.

Kotak Mahindra Fees

Kotak Mahindra: 0.5% processing fee + taxes for salaried individuals.

PNB Housing Charges

PNB: 1% processing fee + GST, no prepayment charges for individuals on floating rates.