penal charges Archives - EMI Calculator

New RBI Rules about Loan Penalty and Wider Choice to Borrowers When Interest Rates Rise

September 5, 2023

The Reserve Bank has come out with two separate circulars in the middle of August 2023. First about levy of penal interest and the second about the reset of interest rate in retail floating rate loans. We discussed both these topics when the RBI broached these topics for the first time. Coming Soon: EMI Defaults… Continue Reading

Coming Soon: EMI Defaults to Attract ‘Penal Charges’ Instead of ‘Penal Interest’

Deepesh Raghaw

March 2, 2023

With loans, the compounding works in the reverse. If you miss an EMI installment, the overdue amount (which includes the principal) gets added to the principal. And you must pay interest on the overdue interest too. Interest on interest. Sounds like compounding, doesn’t it? Just that it is now working against you. After you default… Continue Reading

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