RBI bans fine for pre-paying some biz loans

Posted

The RBI has prohibited prepayment penalties on floating-rate personal and small business loans to simplify lending and facilitate lender switching. Effective January 1, 2026, this directive applies to loans sanctioned or renewed by various financial institutions. The waiver extends to loans up to Rs 50 lakh for smaller lenders, ensuring transparency and fairness in loan transactions.

Read Full Article

Please log in to like, share and comment!