No prepayment fee for floating rate loans says RBI

A great news for home buyers in India. RBI has said that banks should not impose prepayment penalty if a borrower pre-pays his loan. it is quite a relief for home owners who have been made to think about prepayment due to the enormous amount of penalty imposed by many banks, as much as 3% of prepaid money.

Read the livemint article here: No Prepayment fee for floating rate loans