RBI guidelines on lending companies through mobile app: The Reserve Bank of India has issued final guidelines as part of the exercise of curbing the fraud going on in the name of loans by fintech companies. According to these guidelines, digital lending platforms will directly credit the loan amount into the customer’s account. They will not use any third party platform for this. Even if there is any error on the part of the lending service provider, then the regulated entity giving the loan, ie NBFC, will be the responsibility of the company.
Companies will have to provide credit information related to the loan
According to the guidelines issued by the RBI, the lending company through the digital app will have to inform the credit information companies about the loan of the customer. Apart from this, the company will not be able to share any data related to it with anyone without the approval of the customers. Apart from these things, it has also been said in the RBI guidelines that the lending company will also have to appoint a Grievance Redressal Officer (Grievance Redressal Officer).
Cooling off period must be given
According to the guidelines issued by RBI, it will be necessary to include all types of cost of funds, credit costs, operating costs, processing fees, verification charges in the Annual Percentage Rate (APR). In case of non-continuance of the loan, the customer will have to provide the cooling offer period. With this, customers will be able to exit the loan in a convenient way. According to the guidelines issued by the RBI, it will be necessary to send the amount of loan issued from the bank account of the regulated entity directly to the bank account of the customer.
Interest can be recovered only on the outstanding amount
According to the guidelines issued by the RBI for digital loans, the loan fintech company will be able to charge interest only on the outstanding amount of the loan. Apart from this, it will also be mandatory to mention the rate of APR in the fact statement of the company. The responsibility related to the personal data of the customer will be on the regulated entity company giving the loan.