Know these new rules of RBI before taking online loan

The Reserve Bank of India has made new and strict rules regarding the increasing fraud cases related to digital loans in the country.

RBI came up with new rules to deal with the increasing number of fraud cases related to digital loans

The speed with which loans are being obtained is not the speed with which its rules are being made

A standard statement has to be prepared by the lending company

Nowadays earning money as well as getting loans has become very easy. When we wake up every morning, there are many applications and websites ready to give loans which give you the required amount of loan within 10 minutes only. Online loans are called digital lending. RBI has now turned a blind eye to digital lending. The Reserve Bank of India has made new and strict rules regarding the increasing fraud cases related to digital loans in the country. In the month of November in the year 2021, the RBI prepared a list of recommendations and made strict rules based on it.

People who fill ITR and have a good CIBIL score get loans immediately. The Reserve Bank constituted a Working Group (WGDL) on ‘Digital Lending including Lending through Online Platforms and Mobile Apps’ on January 13, 2021. The speed with which loans are being obtained is not being followed by its rules. And due to this, the cases of fraud are increasing and at the same time people are not aware about this.

If you also take loans through digital means then this is a matter of work for you. RBI has announced some new rules to curb the growing confusion in digital loans. Keeping this in mind you can also avoid fraud while taking a loan. Also, the companies which follow these rules are called standard companies and people should take loans only from them.

Let’s find out what are the rules

• If you take a loan from a bank or a finance company, the money should be transferred directly to the account of the person taking the loan. No third party should come in between. A lender should not first give money to a third party account and that third party should not give money to your account. If there is such a policy then the loan should not be taken from that company.
• The loan company should not take money from you for any kind of expenses. For giving a loan, the loan company has to bear any cost for the credit rating of the borrower or for the processing of the loan, not the borrower.
• A standard statement should be prepared by the lending company. In which how much loan you take and how much interest you take and when and how long the loan should be repaid. If someone repays the loan early, no charge should be made. All these standard statements should be as per the rules made by RBI.

Along with this, one should also know first what is the interest percentage and its amount and how much interest and total amount you pay annually.

• The bank employee calls you to inform you to increase the limit on the credit card due to good CIBIL score. But the loan companies increase the loan limit without contacting the customer. According to the RBI rules, now the customer’s loan limit cannot be increased without asking them.
• Along with this, loan companies are required to provide a number where the customer, i.e. the borrower, can easily contact the loan provider to solve any problem. And if the problem is not resolved within 30 days, the borrower can lodge a complaint with the RBI website.