RBI has issued a new guideline to bring transparency in digital lending and prevent any kind of fraud. As per this guideline, digital lending platforms will directly credit the loan amount to the customer’s bank account.
Preparations have been completed to curb the scam going on in the name of giving loans by financial technology companies. Reserve Bank of India has issued the final guideline regarding digital lending. According to this guideline, digital lending platforms will directly credit the loan amount to the customer’s bank account.
They will not use any third party platform for this. Even if any kind of mistake has been committed by the Lending Service Provider (LSP), the responsibility of the regulated entity i.e. NBFC company giving the loan will be fixed.
It will be necessary to give cooling off period-
According to the guideline, the Annual Percentage Rate ie APR will include all types of cost of funds, credit cost, operating cost, processing fee, verification charges, maintenance charges. If the loan is not continued, the customer will have to give a cooling off period, in which the customer can exit the loan. Disbursal from the regulated entity bank account will be directly to the customer’s bank account.
Interest will be charged on the out standing amount-
Interest will be charged out on the outstanding loan amount. Apart from this, APR (Annual Percentage Rate) will have to be mentioned in the fact statement of the company. The information related to the recovery agent will have to be disclosed to the customer at the time of giving the loan to the company. The responsibility related to the personal data of the customer will be on the regulated entity company giving the loan.
Credit information companies will have to be informed about the loan-
The loan giving company will inform the credit information companies about the loan of the customer. The company will not be able to do any kind of data sharing without the approval of the customer. Apart from this, the loan giving company will also have to appoint a Grievance Redressal Officer to remove the problems related to landing.
