Individuals take personal loans for various reasons like medical emergencies, card payments, travel, marriage, renovation of home, etc. A personal loan has a fixed tenure and interest rate. The borrower pays an equal monthly instalment (EMI) towards the loan covering the entire tenure. However, if the borrower returns the entire loan amount before the tenure ends, banks levy certain prepayment charges in India. However, some banks don’t charge on prepayment and thus help you save on the same. Check out the list of such banks.
Banks That Do Not Charge Prepayment Loans
Here is a list of banks that do not charge prepayment loans
- Axis Bank
- Punjab National Bank (PNB)
- Bank of Baroda
- Bank of India
- State Bank of India (SBI)
How Does the Zero Prepayment Charge Help You Save?
Zero Prepayment helps to avoid unnecessary interest, reduce your debts, and customers save the interest amounts. This helps to improve credit score also.