prepayment of home loans
The RBI may issue orders to scrap penalty on pre-payment of all retail and small corporate loans. The central bank disputes the practice of charging pre-payment penalty on any loan since the entire system has moved to floating rates — be it deposits or loans — where rates are charged based on the prevailing markets, [...] Continue Reading »
The Reserve Bank of India ordered all the banks to stop charging penalty on prepayment of home loans taken on floating interest rates. The order is circulated after the Damodaran Committee had observed that foreclosure charges levied by banks on prepayment of home loans were resented by home loan borrowers. The removal of the charges [...] Continue Reading »
