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India - RBI Prepayment Charges Guidelines 2025: What Indian Lenders Must Know. - Conventus Law

Summary by Conventus Law
Introduction  The Reserve Bank of India (RBI) has issued the Prepayment Charges on Loans Directions, 2025 on July 2, 2025. These will come into effect for all loans sanctioned or renewed on or after January 1, 2026. The objective is to standardise the levy of prepayment or foreclosure charges on loans and advances across banks and NBFCs in India.  Applicability  These directions apply to Commercial Banks (but excluding Payments Banks), all Non-B…
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Conventus Law broke the news in on Monday, July 7, 2025.
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