# RBI proposes new loan pricing rules for banks, NBFCs

2026-08-13T04:40:27+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

The Reserve Bank of India (RBI) has issued draft rules to bring more transparency and consistency to how lenders set interest rates on loans. The proposed framework covers fixed and floating-rate loans for commercial banks, regional rural banks, cooperative banks, NBFCs and housing finance companies. It suggests that lenders must base rates on internal or external benchmarks plus a risk-based spread, and cannot price a loan below that benchmark. For floating-rate personal and MSME loans, commercial banks must link them to an external benchmark. The RBI also standardises MCLR calculation using a three-month average cost of fresh deposits. Existing loans must be migrated to the new framework by April 1, 2029. The rules are open for feedback and are expected to take effect from April 1, 2027.

## Coverage

- ndtvprofit.com <https://www.ndtvprofit.com/markets/rbis-loan-pricing-rules-brokerages-decode-new-framework-for-banks-nbfcs-11902835>
- economictimes.indiatimes.com <https://economictimes.indiatimes.com/wealth/borrow/rbi-issues-directions-on-fixed-floating-rate-loans-what-changes-for-home-personal-msme-loans-and-existing-borrowers/articleshow/133205596.cms>

Tags: banks, external benchmark, loan pricing, MCLR, NBFCs, RBI
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