Going by Reserve Bank of India's advice, lending majors, State Bank of India and ICICI Bank have announced complete waiver of prepayment penalty in case of home loans.
With the largest lenders taking the step in this regard, other banks are expected to follow the trend.
Housing finance companies (HFCs), under the umbrella body called National Housing Bank (NHB) have already taken this step.
NHB had issued a directive under which all HFCs had to follow this standard of prepayment penalty waiver.
However, RBI has not come with any strict guidelines in this regard.