No pre-payment penalities on Floating rate laon :RBI

RBI has released a notification on dated 07/05/2014 in which all commercial banks has been asked not to charge foreclosure charges/prepayment penalties on all floating rates term loan sans cation to individual with immediate effect. This is applicable only to individual so bank may charge pre payment charge from partnership firm or corporate

This rule is also applicable to loan like car loan ,House loan ,personal loan
RBI has taken this step to safe guard customer intrest which is really appreciable and a historically important