News & Media 11th Jun 2026

Home Loan rates: the spread counts more than you think

Authors

Mukesh ChandSenior Counsel | Mumbai

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Our Partner, Mukesh Chand shares his insight in Mint, “Home Loan rates: the spread counts more than you think.”

He highlights that while RBI guidelines generally provide that the spreads should not be increased during the tenure of the loan, an increase in the credit-risk premium component of the spread may be permissible where there is a significant deterioration in the borrower’s credit profile. Banks retain discretion under board-approved policies, loan contracts and the RBI framework to review and revise spread components. However, banks generally do not increase spreads for existing borrowers because of competitive pressures.

Read the article here

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