No more prepayment penalty on home loans, says Central Bank of India
By Joseph Samson
Dec 13, 2011
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Public sector lender Central Bank of India has announced the waiver of prepayment penalty on its floating rate home loan schemes.

"In deference to Reserve Bank of India's suggestions, the bank has decided to waive penalty on pre payment of all floating rate housing loans irrespective of the source of funds of the borrowers," said the bank.

CMD of the bank, Mr M V Tanksale said that the waiver of this penalty would apply both to new as well as existing borrowers of the bank.

Major lenders like State Bank of India and ICICI Bank have already waived off prepayment penalty on this cadre of home loans.

National Housing Bank (NHB), the umbrella body governing all housing finance companies (HFCs) has directed them to waive off prepayment penalty from their floating rate home loan offerings.


(Comments Posted : 4) Post Your Comments

Eagarly looking for reply on why Barclays is not issuing the notification on Prepayment panatly waiver?

Are the RBI instructions are advise or Guidelines.. Not binding on all Banks?

Recently, it was mentioned in the press that Barclays is closing its Retail Banking? Is any one taking over its Operations?

Approaching Banking Ombudseman will help in this matter??

Please advise.
Venkat (Posted: Dec 19, 2011)
2. Why citibank is not following these guidelines to waive off prepayment penalty. They still collect 2 to 4% ? Looting customers !
Ramky (Posted: Dec 18, 2011)
3. This is very intresting and informative site for users.The problems for the couple started when they were told a large down payment had already been made on their home, which turned out not to be true.Home purchase loan
benpapker.k (Posted: Dec 15, 2011)
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