MUMBAI: RBI has directed banks and NBFCs to cease levying pre-payment expenses on all loans granted for enterprise goal to people and MSEs, with or with out co-obligant(s).
Small finance financial institution, city co-operatives and regional rural banks shall additionally not levy any pre-payment expenses on loans with sanctioned quantity/ restrict as much as ₹50 lakh. The instructions are relevant no matter the supply of funds used for pre-payment of loans, both partly or in full, and with none minimal lock-in interval, RBI mentioned.
