MUMBAI: RBI has directed banks and NBFCs to stop levying pre-payment charges on all loans granted for business purpose to individuals and MSEs, with or without co-obligant(s).
Small finance bank, urban co-operatives and regional rural banks shall also not levy any pre-payment charges on loans with sanctioned amount/ limit up to ₹50 lakh. The directions are applicable irrespective of the source of funds used for pre-payment of loans, either in part or in full, and without any minimum lock-in period, RBI said.
