Economy & Finance
RBI Removes Prepayment Penalties on All Floating-Rate Loans from April 1
The Reserve Bank of India formally removed prepayment and foreclosure penalties on all floating-rate loans to individual borrowers effective April 1, 2026. This policy change provides relief to borrowers and enhances loan flexibility, allowing customers to repay loans early without additional charges.
Key Facts
Applicable to all floating-rate loans to individual borrowers
Effective from April 1, 2026
Removes both prepayment and foreclosure penalties
Enhances borrower flexibility in high-interest environment
RBI consumer protection measure
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