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RBI Wants All Banks To Abolish Foreclosure Charges On Home Loans

RBI has mentioned a circular to all banks stating that they need to ensure they have followed the system that they have implemented where banks are not allowed anymore permitted to charge prepayment penalties on home loans on floating interest rate basis. Borrowers can now freely shift loans without incurring prepayment charges.

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Reserve Bank of India

There might be some who are saying that this is not that big money, but still it is worth complaining especially with the economic problems that the country is experiencing right now. Surely, no borrowers would want to have a loan that is very high when it comes to interest and this is one reason why lenders will be forced to bring down interests rates for their own business.

A lot of people know about the discrimination of new borrowers from the old borrowers and this discrimination will surely be addressed in the soonest possible time. Another reason why rate of homes are decreasing is competition.

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