"As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs, it is advised that NBFCs shall not charge foreclosure charges/pre-payment penalties on all floating rate term loans sanctioned to individual borrowers," RBI said in a notification.
Floating loan products include housing, corporate, vehicle and personal loans.
Earlier in May this year, RBI had asked banks not to levy any penalty on individual borrowers for pre-paying floating loans.
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