New Delhi, Nov. 27 -- When you take a floating interest rate loan like a home loan, some banks decide the interest rate based on your credit score, along with other factors. The higher the credit score, the lower the interest rate offered. Now, as per the RBI's new directions, after taking the loan, if your credit score improves, you can approach the bank with a request to reduce the interest rate.In this article, we will understand what the RBI's new directions are, when they are effective, and how they can help you reduce the interest rate on your home loan.

On 29th September 2025, the RBI issued the Reserve Bank of India (Interest Rate on Advances) (Amendment Directions), 2025. As per the new directions, banks can reduce the spread ch...