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Is prepayment penalty on home loan top up loan allowed by RBI ?

Hi,

I have two loans outstanding from Stanchart,one is a home loan and another is a topup, i have applied for preclosure of both since HSBC is offering a better rate,however SCB is charging 2.5 pc prepayment penalty on the top up,is it legally allowed as RBI has abolished penalty on all floating rate home loans.

thanks,

Jatin

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