New Delhi, Oct. 28 -- Your EMIs (Equated Monthly Instalments) will change at a faster pace than earlier, thanks to a new rule by the RBI (Reserve Bank of India) that has come into effect this October. The RBI has changed the three-year lock-in for changing certain parts of the spread from October 1. The bank's spread is an important part of a loan and is the additional charge that it collects from the borrower, which is over and above the benchmark lending rate.

"Banks may reduce the other spread components for the benefit of the borrower earlier than three years," RBI said in its latest directions on interest rate advances. This means that if RBI lowers its benchmark lending rates or if your credit score improves, you will get the full ...