To fulfill their dreams, employed people often resort to loans, which include everything from buying a house to buying a car. Many times loan becomes a problem for them. There is also a risk of becoming a loan defaulter in case of not being able to repay the installment on time. Let us understand that those who are unable to make loan payments for some time. How does this RBI rule help them?
If you want to build a house or buy a new car, even if you do not have money in your pocket, you can fulfill your dream. For this, banks offer loans with EMI facility. Many times people take personal loans to meet their basic needs. The easier it is to get a loan, the more difficulty a person faces in paying its EMI. Many times such a situation arises that he is not able to repay the loan on time. To get rid of such problem, RBI has made a rule. Let us know.
What is the rule of RBI?
CIBIL score monitors people’s loan or credit card expenses. According to a recently released report, there has been an increase in credit card expenses and personal loans have also gone down to the level before the Corona period. At some places that figure has also been crossed.
According to RBI rules, those who are not able to complete their loan EMI on time or are not able to pay the fixed amount due to some reason, then they can consider the option of restructuring. That is, if a person’s EMI is Rs 50 thousand. So if he wants, he can restructure this amount and change the loan period, due to which his EMI can be reduced from Rs 50 thousand to Rs 25 thousand.
This amount is decided as per your convenience. If someone does this, it gives him immediate relief from the pressure of EMI and he saves himself from the tag of loan defaulter.
CIBIL score is not affected
When any bank gives a loan to a person, it checks the credit history of that person once. Banks have the right to check his credit history before giving loan. Once a person is tagged as a loan defaulter, any bank gives him a loan with great difficulty. Even banks outright refuse to give loans.
Let us tell you that every person’s credit score is different. It is decided according to the loan taken by the person and the EMI paid on time. There are some other factors which are responsible for the score, but making timely payment is considered to be the most important. A person’s credit score can range from 300 to 900. Banks easily give loans to people with credit scores above 700. It is considered in better category.
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