So Hdfc ltd, Indiabulls, Lic housing had to implement this. With competition from housing finance companies Banks are now coming with Home loans without prepayment penalty.

This is good news for home loan customers in two ways. Now whenever they have some extra cash they can pay ther home loan and reduce there burden and if one bank is charging high they can switch that home loan to another bank.

This is a win -win situation for home loan customers and with no prepayment penalty its a good move by the regulator for the customer.

Banks and housing finance companies used to charge 2-4% of prepayment penalties earlier which dettered people to pay earlier and they were stuck in debt of home loan.