PREPAYMENT PENALTY IS NO MORE ON FLOATING HOME LOAN AND AUTO LOAN

Banks, like the old time seth, always try to give pain financially to the customers.The pain is big when some body want to borrow the money from bank. banks always ready to levy different charges on loans.

The new charge is prepayment penalty. It means one need to pay more if he desire to pay the loan early. It doesn't sense at all. Why we pay more if we return the money early?.


Reserve Bank of India take the meeting with all the bank and they are agreed to waive the prepayment penalty, which may be 1-5% on different loans and occasions.

With this move one can easily shift the home loan from one bank to another where the common man gets better interest rate. It also increases competition between banks, which will give benefit only to customers.

However fixed rate home loan will be charged prepayment penalty as usual.


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About Nitin Aggarwal

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