Following the footsteps of the leading banks like State Bank of India and ICICI Bank, Punjab and Sind Bank has also announced to withdraw prepayment penalty on home loans. The development is applicable with immediate effect. The Chairman and Managing Director of the bank, Mr. D. P. Singh said, "The decision to waive repayment charges on housing loans reflects the concern of the bank for its borrowing clientele desirous of repaying housing loans before their repayment schedule."
The Housing Finance Companies are not allowed to charge the penalty from the borrowers. The Reserve Bank of India has also been suggesting the lenders to abolish the practice of levying prepayment penalty. |
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