RBI Home Loan Prepayment Rules

The Core Rule No bank, NBFC, or housing finance company can charge prepayment or foreclosure penalties on floating rate home loans taken by individual borrowers. This applies to partial prepayments, full foreclosures, and balance transfers — regardless of the funding source or co-borrowers. Enforced since 2012; comprehensively reinforced via the RBI (Pre-payment Charges on Loans) Directions, 2025, […]