In a big respite to the millions of borrowers, the Central Bank of India, has decided to scrap the home loan pre-payment charges.

“In deference to Reserve Bank of India’s (RBI) suggestions, the bank has decided to waive penalty on pre-payment of all floating rate housing loans irrespective of the source of funds of the borrowers,” Central Bank of India said in a statement.

The new as well as the old borrowers will be no longer required to pay the pre-payment penalty on all floating rate housing loans of the bank.