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Prepayment Penalty on Loans #finance #bank #education
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🔸As the name suggests, pre-payment is a facility offered by some banks to help a borrower repay their loan before their actual repayment tenure as per the loan documents. The pre-payment can be done in parts or in full.
➡️RBI Guideline:-
1. In terms of which banks are not permitted to charge foreclosure charges / pre-payment penalties on home loans / all floating rate term loans sanctioned to individual borrowers.
2. In this connection, it is clarified that banks shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned, for purposes other than business, to individual borrowers with or without co-obligant(s).
Source:- RBI, icici
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#bank #loanofficer #loan #personalloan #moneymanagement #financialeducation
➡️RBI Guideline:-
1. In terms of which banks are not permitted to charge foreclosure charges / pre-payment penalties on home loans / all floating rate term loans sanctioned to individual borrowers.
2. In this connection, it is clarified that banks shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned, for purposes other than business, to individual borrowers with or without co-obligant(s).
Source:- RBI, icici
.
.
.
.
.
.
.
.
.
#bank #loanofficer #loan #personalloan #moneymanagement #financialeducation
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