No pre-payment charges on floating rate term loans: RBI

RBI has already prohibited banks from charging penalty for prepayment of home loans and now the same has been extended to individual term loans The Reserve Bank of India (RBI), on Wednesday said that banks should allow customers to prepay floating rate term loans without any penalty.  “It is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect,” the RBI said in a statement.  http://www.myallagents.com/No-prepayment-charges-on-floating-rate-term-loans-RBI/details.html