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RBI bars pre-payment charges on floating rate loans to individuals
short by Vaishnavi Mishra / on 03 Jul 2025,Thursday
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 move, effective from next year, aims to promote fair lending and easy access to finance. Some lenders' restrictive clauses in contracts discourage borrowers from switching to another lender offering better terms of service, RBI said.
short by Vaishnavi Mishra / 06:24 pm on 03 Jul
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