Banks are not permitted to charge foreclosure charges/pre-payment penalties on home loans on floating interest rate basis
RBI/2011-12/589 DBOD. No. Dir. BC.107/13.03.00/2011-12 June 5, 2012 All Scheduled Commercial Banks(Excluding RRBs) Dear Sir/Madam Home Loans-Levy of fore-closure charges/pre-payment penalty Please refer to our circular DBOD. No. Dir. BC. 56/13.03.00/2006-2007 dated February 2, 2007 on reasonableness of bank charges. 2. In this context, attention is invited to paragraphs 81 to 83 of the Monetary Policy Statement 2012-13 announced on … Read more