RBI Prohibits Pre-Payment Charges on Business Loans for Individuals and MSEs, ETLegalWorld
The RBI on Wednesday directed banks and other lenders not to levy any pre-payment charges on all floating-rate loans and advances, including for business purposes, availed by individuals and micro and small enterprises (MSES). The directions will be applicable to all loans and advances sanctioned or renewed on or after January 1, 2026. In terms…