OBS_VALUE: There is no general rule on early repayment. Many banks allow it, but charge early repayment penalties up to 2-3% of the principal amount outstanding. Prepayment penalty may vary according to the reasons and source of funds - if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources.See additionally: Question 13 under the RBI FAQ on Housing Loans: http://rbi.org.in/scripts/FAQView.aspx?Id=77