[nirmalts]

Thanks for the info. I haven't talked to my bank yet. My (home) loan is 7 years old. I hope I don't get any surprises.

[nirmalts]

I got some additional info from someone who retired from RBI

It is true that banks have been directed not to levy any pre closure charges in case of housing loans, however,
1. banks may check whether the funds used to extinguish existing loan is from the borrowers own source. In other words if banks suspect that the funds used to extinguish the loan has come from another bank loan, the bank may create problems by levying some charges. (Transferring loan to another bank for interest arbitrage, etc).
2. The loan availed should not be on fixed interest rates. (In most cases the loan would have been taken on floating rates).

My loan is floating. My bank confirmed that there are no pre-closure charges, expect for some document retrieval charges of approx 2k.

[saket77]

I pre-closed my home loan about 2 years ago with about 7 more years to go for the full tenure. I did not pay any pre-closure charges. Hope this helps.

Regards.