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Wednesday, May 7, 2014

Don't take fine on prepayment of Loan

Providing relief to borrowers, Reserve Bank on Wednesday directed banks not to levy any penalty on individual borrowers for pre-paying floating loans.

"...it is advised that banks will not be permitted to charge foreclosure charges or pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect," RBI said in a notification.

Floating loan products include housing, corporate, vehicle and personal loans.

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