News & Media 11th Jun 2026

Home Loan rates: the spread counts more than you think

Authors

Mukesh ChandSenior Counsel | Mumbai

Latest Thought Leadership

Alerts & Updates 22nd Oct 2026

Beyond the Boardroom, when workplace safety becomes Personal Liability

Read More
Alerts & Updates 12th Oct 2026

57th GST Council Meeting – Key GST Reforms

Read More
Newsletter/Booklets 12th Oct 2026

Capital Markets Newsletter: September 2026

Read More
Alerts & Updates 8th Oct 2026

EXEMPTION FROM THE REQUIREMENT OF MANDATORY MERCHANT BANKER APPOINTMENT FOR DEBT ISSUED THROUGH PRIVATE PLACEMENT BY CERTAIN LISTED ISSUERS

Read More

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

Privacy Policy

As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.