A draft framework has been proposed to standardize how interest rates are calculated and applied on loans and advances, with the focus on improving transparency and ensuring greater uniformity across lenders. The proposed rules seek to streamline practices related to benchmark-linked lending, interest-rate spreads, spread revisions, and interest calculation. They also aim to address operational issues in existing lending-rate frameworks. Under the proposed framework, interest on advances would generally be calculated at monthly rests. For agricultural loans, different provisions have been proposed based on crop duration. Interest on long-duration crops would generally be calculated at annual rests, while short-duration crop loans would be linked to repayment due dates and crop seasons. The proposed changes are not expected to directly alter existing loan EMIs. They also would not automatically place non-banking lenders under the same external benchmark-linked lending requirements applicable to banks. The new framework is proposed to come into effect from April 1, 2027. Stakeholders, financial institutions, and members of the public have been invited to submit comments on the draft proposals by September 11, 2026.