Tuesday, July 29, 2025

Creating liberating content

Top stocks to sell today (AI image) Stock market recommendations:

Singapore Airlines said it’s upbeat about travel demand over the

NEW DELHI: Adani Total Gas on Monday reported an 8%

NEW DELHI : Elon Musk-led satellite communication services provider Starlink

Related News

Top stocks to sell today (AI image) Stock market recommendations: According to Somil Mehta, Head – Alternate Research, Capital Market Strategy, Mirae Asset Sharekhan, Tata Tech, and NCC Ltd are

Singapore Airlines said it’s upbeat about travel demand over the peak summer travel period, even as the carrier weathers a slump in profit due to losses at Air India. The

NEW DELHI: Adani Total Gas on Monday reported an 8% fall in its June quarter net profit after a cut in supply of cheaper domestically produced gas led to higher

NEW DELHI : Elon Musk-led satellite communication services provider Starlink can have only 20 lakh connections in India due to constraints over spectrum capacity, minister of state for telecom Pemmasani

MUMBAI: IndusInd Bank returned to profit in Q1FY25, although net profit fell sharply by 72.2% to Rs 604.1 crore from Rs 2,170.7 crore a year earlier. The decline was driven

NEW DELHI: Industrial output growth slowed to a 10-month low in June, dragged down by a contraction in mining and electricity sectors and sluggish capital goods and consumer durables segments.Data

Trending News

Singapore Airlines said it’s upbeat about travel demand over the peak summer travel period, even as the carrier weathers a slump in profit due to losses at Air India. The

MUMBAI: IndusInd Bank returned to profit in Q1FY25, although net profit fell sharply by 72.2% to Rs 604.1 crore from Rs 2,170.7 crore a year earlier. The decline was driven

New Delhi: The Indian economy in mid-2025 presents a picture of cautious optimism, a finance ministry report said on Monday, but it cautioned that in the medium term, given the

The rupee gave up early gains and settled 18 paise lower at 86.70 against the US dollar on Monday, pressured by persistent month-end dollar demand from importers and caution ahead

China’s decision to ban exports of certain rare earth elements could disrupt India’s domestic production and exports in at least five core sectors, including transport equipment, basic metals, machinery, construction,

The finance ministry has said there is room for further interest rate cuts by the Reserve Bank of India (RBI), as inflation remains comfortably below the central bank’s medium-term target

RBI lending directive: No more pre-payment charges; borrowers to get freedom from 2026

Word Count: 692 | Estimated Reading Time: 4 minutes


RBI lending directive: No more pre-payment charges; borrowers to get freedom from 2026

In a move to enhance transparency and borrower flexibility, the Reserve Bank of India (RBI) has barred banks and other regulated lenders from imposing pre-payment charges on floating rate loans availed by individuals for non-business purposes. The new norms, issued under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, will be applicable to all loans and advances sanctioned or renewed on or after January 1, 2026, as per news agency ANI.This sweeping directive will apply across commercial banks (excluding payment banks), co-operative banks, Non-Banking Financial Companies (NBFCs), and All India Financial Institutions. The exemption from pre-payment penalties applies irrespective of the loan being repaid fully or partially, regardless of the source of funds used. It also covers loans with or without co-obligants.According to the RBI, “No pre-payment charges shall be levied on floating rate loans taken by individuals for non-business purposes,” adding that this applies even to dual or special rate loans, if the loan is on a floating rate at the time of repayment. There is no minimum lock-in period for availing this benefit.The RBI said it exercised its powers under Sections 21, 35A and 56 of the Banking Regulation Act, 1949; Sections 45JA, 45L and 45M of the RBI Act, 1934; and Section 30A of the National Housing Bank Act, 1987 to issue these directions. The central bank added that the move consolidates earlier circulars on foreclosure and pre-payment, creating a single, comprehensive framework.In cases where pre-payment charges are applicable—such as fixed-rate loans or those not covered under the new norms—the charges must be clearly disclosed in the sanction letter and loan agreement. “If a Key Facts Statement (KFS) is applicable, these charges must also be disclosed there. No undisclosed or retrospective charges will be allowed,” the RBI said. Additionally, no charge can be levied if the pre-payment is initiated by the lender.The RBI observed that certain lenders had been including restrictive clauses in loan agreements to discourage customers from switching to other lenders offering more favourable terms. The new rules are aimed at correcting such practices and enhancing consumer trust.





Source link

Most Popular Articles

Sign In

Welcome ! Log into Your Account