Pre-Payment & Part Payment charges on the home loan outstanding is abolished by both the Reserve Bank of India(RBI) & the National Housing Bank(NHB) which are the governing bodies of Banks & Housing Finance Companies respectively.

However, the successive circulars issued by both the governing bodies pertains to Home Loan availed under Floating Rate of Interest only. If you were to avail a Home Loan under a Fixed rate of interest from either a bank or a Housing Finance Company then they are likely to charge you for pre & part payment.

The charges could be in the range of 1% to 3% on the outstanding balance.

The RBI circulars on pre & part payment can be accessed here.

1) RBI Circular 1

2) RBI Circular 2

The NHB circulars on pre & part payment can be accessed from the NHB website National Housing Bank (nhb.org.in)