July 3, 2025 11:48 AM
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RBI bars pre-payment charges on transfer of floating rate loans for individual borrowers
Reserve Bank of India (RBI) has prohibited banks and other regulated lenders from charging pre-payment penalties on floating rate loans availed by individuals for non-business purposes. The new norm, namely Pre-payment Charges on Loans Directions, 2025, will be effective from next year. It is aimed ...