Nbfc interest rate

This query is : Resolved 
 

(Querist)
09 April 2020

Is there any limit on minimum rate at which NBFC can lend money to its borrowers?



Raj Kumar Makkad (Expert)
09 April 2020

Though under revised RBI guidelines the exposure money of the bank to NBFC has been revised from 15% to 20% but there is no minimum rate of interest for lending the money by Non Banking Finance Companies which means the same is negotiable between both the contracting parties.

KISHAN DUTT RETD JUDGE (Expert)
10 April 2020

Dear Sir
NBFC interest rate policy
Co-origination of loans by Banks and NBFCs for lending to priority sector
Example 1
Blended interest rate calculations Bank NBFC
Benchmark Interest Rate 8% 9%
Spread 2% 3%
Interest rate to consumer 10% (A) 12% (B)
2 more rows•Sep 21, 2018

SHIRISH PAWAR, 7738990900 (Expert)
10 April 2020

Dear querist,

RBI announce the rate below which banks and NBFC cannot lend. The rate declared by RBI is binding to all NBFC and banks.

Regards,

Shobhit Jain (Querist)
10 April 2020

Minimum rate of interest announced by RBI is known as?

Rajendra K Goyal (Expert)
10 April 2020

RBI announces average base rate for NBFCs.

The Reserve Bank of India announced the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning April 1, 2020 at 8.76 per cent.


Rajendra K Goyal (Expert)
11 April 2020

This is an academic query.
Author has not mentioned how he is concerned or what are the the facts of the problem?.
No Minimum rate of interest to be charged by NBFC is fixed.
RBI announces average base rate for NBFCs.

T. Kalaiselvan, Advocate (Expert)
12 April 2020

an NBFC-MFI can charge a differential rate of interest to its customers but the variance for individual loans between the minimum and maximum interest rate cannot exceed 4 per cent.

T. Kalaiselvan, Advocate (Expert)
12 April 2020

What are the charges that a customer is supposed to pay for the loan that he takes from an NBFC-MFI?

A customer needs to know that there are only three components in the pricing of a loan viz. the interest charge, the processing charge and the insurance premium (which includes the administrative charges in respect thereof). An NBFC-MFI cannot levy any charges apart from the three mentioned above.

T. Kalaiselvan, Advocate (Expert)
12 April 2020

How can a borrower find about the current interest rate being charged by the NBFC-MFI?

RBI has made it mandatory for the NBFC-MFI to prominently display in all its offices and in the literature issued by it and on its website, the effective rate of interest being charged by it.

Dr J C Vashista (Expert)
13 April 2020

The NBFC has to display prominently the borrowing and lending rate(s) of interest in terms of guidelines issued by Reserve Bank of India, if you are interested in borrowing.
Prima facie it is an academic topic for time pass debate, where no dispute is involved for consideration and obligation of experts.

Rajendra K Goyal (Expert)
13 April 2020

Agree with the expert Dr. J.C. Vashishta ji. It is academic query, also it appears that the query has been posted to test the knowledge of the experts.



You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now











×

  LAWyersclubindia Menu

CrPC MASTERCLASS     |    x