Lenders will not be able to charge prepayment fees on variable rate loans made to individuals, MSEs from January 1, 2026

The RBI said its directions are subject to specific conditions based on the property category and loan amount sanctioned. Banks and Non-Banking Finance Companies (NBFCs) cannot charge prepayment charges on floating rate loans extended to individuals for non-business purposes and to individuals and Micro and Small Enterprises (MSEs) for business purposes, as per the RBI’s […]