Good news for small business owners! From Jan 1, 2026, the RBI has banned banks and NBFCs from charging prepayment penalties on floating rate loans for Micro and Small Enterprises (MSEs) and individuals borrowing for business. No matter how or when you repay—no extra charges. This move is all about fairness and easier credit access for India’s backbone: its small businesses.
- Applies to new and renewed loans from Jan 1, 2026
- No partial/full prepayment charges—zero lock-in
- Transparency rules tightened for all lenders
- No hidden clauses or fee reintroductions allowed
👉 Why this matters: MSEs can now refinance or repay early without fear of penalties—more freedom, less stress.
🔗 Source: RBI Official Circular
🔍 Curated by Articoli News
🖋️ Written and summarized by our editorial team using AI assistance and human review.
📚 Sources: Market insights on the internet and other verified media platforms.
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