Punjab & Sind Bank abolishes prepayment fines on housing loans

NEW DELHI: Punjab & Sind Bank today said it has abolished pre-payment penalties on housing loans for all types of borrowers with immediate effect.

"The decision to waive repayment charges on housing loans reflects the concern of the bank for its borrowing clientele desirous of repaying housing loans before their repayment schedule," PSB Chairman and Managing Director D P Singh said in a statement.

He said the bank has kept the interests of the customer in the forefront while framing policies.

State Bank of India, ICICI Bank and Central Bank of India abolished pre-payment penalty last year.

Housing finance companies has already been barred from charging foreclosure charges. In October 2011, the sector regulator National Housing Bank had directed housing finance companies to desist from imposing a pre-payment penalty on home loan borrowers.