Floating home loans exempt from prepayment penalty: NHB

National Housing Bank (NHB) is likely to get into contract with Reserve Bank of India’s agreement to exempt floating home loans from prepayment penalty.
According to the NHB officials “we are soon coming with the new orders and according to which will order to housing finance companies to write-off prepayment penalty form floating home loan. They added that “soon we will come out with the new proposed norms to remove prepayment penalties on all accounts.”
We are considering the contemporary market situation and leaving a broad space to borrowers and also consulting with RBI regarding exemption of prepayment penalty form floating home loan. Housing finance companies can not deter to borrowers in a very robust property market.
Hitherto far these HFCs were not charging any pre-closure penalty in case the customer was doing so with his own funds. But the new proposed guidelines will be inculcating to customers to exempt form penalties though the borrower closes his loan with money borrowed from some other lender.

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