Starting January 1, 2026, the RBI has banned prepayment penalties on most floating-rate loans for individuals and small businesses. This guide simplifies the new rule, covering who benefits (like salaried individuals and MSEs), which loans are exempt (fixed-rate loans, large business loans), and the universal borrower-friendly guidelines. Understand how renewals work and get a clear summary to see if your home, personal, or business loan qualifies for no-cost foreclosure.