Home Loan Prepayment Rules — Bank-by-Bank Comparison India 2026
RBI's standalone prepayment notification issued in 2025 has been withdrawn, and its instructions are set out in lender-category-specific Master Directions. Product fees, payment limits, notice requirements, and payment channels still need to be checked against your own contract and the lender's current instructions. Source-check dates vary by lender; see the date in each row. The latest lender source-check date is 2026-10-06. Confirm current terms before paying.
Prepayment Rules Comparison Table
| Bank | Type | Lender source | Source last checked |
|---|---|---|---|
| SBI | PSU | SBI Home Loan — Most Important Terms and Conditions (PDF) | 2026-10-06 |
| HDFC Bank | Private | HDFC Home Loans - Prepaying Home Loan (Blog) | 2026-02-27 |
| ICICI Bank | Private | ICICI Bank Home Loan - Fees & Charges | 2026-02-27 |
| Axis Bank | Private | Axis Bank Home Loan - Charges & T&C | 2026-02-27 |
| Bank of Baroda | PSU | Bank of Baroda Home Loan - Service Charges | 2026-02-27 |
| LIC HFL | HFC | LIC Housing Finance - FAQ | 2026-02-27 |
| PNB Housing | HFC | PNB Housing Home Loan - Charges | 2026-02-27 |
| Kotak | Private | Kotak Home Loan - Charges & Terms | 2026-02-27 |
| Canara Bank | PSU | Canara Bank Home Loan - Guidelines | 2026-02-27 |
| Union Bank | PSU | Union Bank Home Loan - Terms & Charges | 2026-02-27 |
| PNB | PSU | PNB Housing Loan - Charges & Process | 2026-02-27 |
| Indian Bank | PSU | Indian Bank Home Loan - Product Terms | 2026-02-27 |
| Bank of India | PSU | Bank of India Home Loan - Terms | 2026-02-27 |
| IDBI Bank | Private | IDBI Home Loan - Service Charges | 2026-02-27 |
| Bajaj Housing | HFC | Bajaj Housing Finance - Home Loan Prepayment Charges & Rules | 2026-10-06 |
Bank-Wise Summary
State Bank of India
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-10-06. Open SBI Home Loan — Most Important Terms and Conditions (PDF).
Read full SBI rules →HDFC Bank
PrivateLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open HDFC Home Loans - Prepaying Home Loan (Blog).
Read full HDFC Bank rules →ICICI Bank
PrivateLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open ICICI Bank Home Loan - Fees & Charges.
Read full ICICI Bank rules →Axis Bank
PrivateLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Axis Bank Home Loan - Charges & T&C.
Read full Axis Bank rules →Bank of Baroda
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Bank of Baroda Home Loan - Service Charges.
Read full Bank of Baroda rules →LIC Housing Finance
HFCLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open LIC Housing Finance - FAQ.
Read full LIC HFL rules →PNB Housing Finance
HFCLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open PNB Housing Home Loan - Charges.
Read full PNB Housing rules →Kotak Mahindra Bank
PrivateLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Kotak Home Loan - Charges & Terms.
Read full Kotak rules →Canara Bank
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Canara Bank Home Loan - Guidelines.
Read full Canara Bank rules →Union Bank of India
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Union Bank Home Loan - Terms & Charges.
Read full Union Bank rules →Punjab National Bank
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open PNB Housing Loan - Charges & Process.
Read full PNB rules →Indian Bank
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Indian Bank Home Loan - Product Terms.
Read full Indian Bank rules →Bank of India
PSULoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open Bank of India Home Loan - Terms.
Read full Bank of India rules →IDBI Bank
PrivateLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-02-27. Open IDBI Home Loan - Service Charges.
Read full IDBI Bank rules →Bajaj Housing Finance
HFCLoan-specific charges, eligible payment amounts, and process steps need confirmation from your current contract and lender. Source recorded 2026-10-06. Open Bajaj Housing Finance - Home Loan Prepayment Charges & Rules.
Read full Bajaj Housing rules →Frequently Asked Questions
When does the RBI rule prohibit prepayment charges?
RBI prepayment-charge instructions are set out in lender-category-specific Master Directions. Check the direction for your lender, including how it treats loan dates, borrower and loan purpose, and the rate type on the prepayment date. Other cases may be governed by additional rules and contract terms.
Do fixed-rate home loans have prepayment penalties?
There is no single fixed-rate charge that applies to every home loan. Charges depend on the lender, product, contract, applicable RBI rules, and source of funds where relevant. Check the current fee schedule and your loan documents.
Is there a minimum amount for part-payment?
There is no single minimum amount across lenders and products. Check your sanction letter, loan agreement, and current lender instructions for your account.
How many times can I make part-payments in a year?
The payment process and any product-level operational requirements vary. For loans covered by the 2025 RBI Directions, prepayment charges cannot be imposed on qualifying floating-rate non-business loans to individuals; confirm your eligibility and payment process with the lender.
Should I reduce EMI or tenure after prepayment?
If the lender keeps the EMI unchanged and shortens the tenure, that generally costs less interest than reducing the EMI over the original tenure, assuming the same rate and payment timing. Reducing the EMI can improve monthly cash flow. Ask what options your lender offers.
When is the best time to make a prepayment?
With the rate and other terms held constant, reducing principal sooner generally leaves less balance on which future interest can accrue. Compare using your current outstanding balance and lender schedule; there is no universal best year.
Calculate Your Prepayment Savings
Use the home loan prepayment calculator to estimate how much interest and tenure you can save.
This page is for informational and educational purposes only. Prepayment rules and charges may change. Always verify terms with your bank or check your sanction letter before making prepayment decisions. Source-check dates vary by lender; see the date shown for each lender. RBI rule summary references the official Directions linked above. Always confirm current terms directly with your lender.