# RBI proposes tighter loan pricing rules for banks, NBFCs 2026-08-12T21:55:21+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets Lenders will no longer be able to freely tinker with loan spreads under draft RBI rules meant to standardise interest-rate setting across banks, NBFCs and cooperatives. The spread between the benchmark rate and the loan rate must remain fixed for at least three years, except for documented changes in the borrower's credit profile. Floating-rate personal loans and MSME loans must link to an external benchmark like the repo rate. Interest must be charged on monthly rests and calculated on a daily reducing balance. The RBI also proposed a cap on the annual percentage rate for small-value loans (up to Rs 50,000) and microfinance to prevent usurious pricing. Comments are due by September 11, and the rules are to take effect from April 1, 2025. ## Coverage - businesstoday.in - timesofindia.indiatimes.com Tags: banking, loan rates, MSME credit, NBFCs, RBI Canonical: https://indianopinion.org/rbi-proposes-tighter-loan-pricing-rules-for-banks-and-nbfcs/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rbi-proposes-tighter-loan-pricing-rules-for-banks-and-nbfcs/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.