Pre-Payment Charges on Home Loan?

POSTED BY honda ON May 1, 2012 2:09 pm COMMENTS (3)

Dear Friends,

Few weeks ago there was an article on rediff regarding removal of charges for pre-payment done by a customer on the home loan he has taken from the bank. Please refer to the link for more details:
http://www.rediff.com/business/report/no-more-pre-payment-charges-on-home-loans/20120417.htm

Can someone guide if this has been mandated by RBI to be followed by all the banks (private/public).

Thanks,

3 replies on this article “Pre-Payment Charges on Home Loan?”

  1. Zoeb says:

    I think it mandatory for all banks to not charge any penalty on fore closer of the loan amount

    http://articles.economictimes.indiatimes.com/2012-04-18/personal-finance/31361610_1_prepayment-home-loans-basic-banking

    May I know which bank are you referring to ?

    Regards

    Zoeb

    1. honda says:

      I have 2 housing loans one from Bank of Baroda which was taken 4 years ago and this is the one where I’m considering to do the pre-payment. Another loan is from HDFC which is taken this year itself.

      1. Dear Honda, the prepayment charges have been abolished by RBI. Please go ahead & prepay that BOB home loan.

        Thanks

        Ashal

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