DON'T pay this PENALTY ❌ #finance #education #learning

DON'T pay this PENALTY ❌

🔶 Foreclosure is a process in which a borrower repays his debt in full before the term of the loan ends

🔶This helps in significantly reducing the interest liability and closing the loan account before it's tenure

🔶As per RBI guideline, banks and NBFCs have been instructed to do away with foreclosure/ prepayment penalty on floating interest rate term loans

🔶It has to noted that this applies when loans are given to individual borrowers (with or without co-applicants) for purposes other than business

🔶So make sure that the lender has not included prepayment penalties in case you choose to foreclose the a floating rate loan

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