Why RBI stopped foreclosure fees on loans to small borrowers
- Posted on July 8, 2025
- By Financial Express
- 2 Views
Why RBI stopped foreclosure fees on loans to small borrowers
From January 1, 2026, the RBI's new guidelines will prohibit banks and NBFCs from levying pre-payment charges on floating-rate business loans for individuals and MSEs, aiming for greater transparency and financial flexibility.
