RBI: Now you can repay floating rate loans before time without any fee, rule will be applicable on non-business loans from 2026

RBI: The RBI said in a circular on Wednesday, reviews have revealed that MSEs have to pay a higher fee for repaying the loan earlier. This creates disputes between the lending institution and the customers. Some banks and financial institutions have made such rules in the loan agreement, so that the borrower cannot go to another institution to avail lower interest or better terms.

  Business