🔸As the identify suggests, pre-payment is a facility provided by some banks to assist a borrower repay their mortgage earlier than their precise compensation tenure as per the mortgage paperwork. The pre-payment may be performed in elements or in full.
➡️RBI Guideline:-
1. In phrases of which banks will not be permitted to cost foreclosures fees / pre-payment penalties on house loans / all floating price time period loans sanctioned to particular person debtors.
2. In this connection, it’s clarified that banks shall not cost foreclosures fees/ pre-payment penalties on any floating price time period mortgage sanctioned, for functions aside from enterprise, to particular person debtors with or with out co-obligant(s).
Source:- RBI, icici
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