I was shocked!🤯
Every time I open my mobile wallet app, there is a prompt to avail of their borrowing service for daily transactions like taxis and groceries!!
And it is so creatively worded that it doesn’t even seem like you are taking a debt!
Because of increasing instances of this and of outright fraud in online loans, RBI issued guidelines for digital Lending.
And in that, it is mentioned that before taking a debt, the enterprise has to give you a KEY FACT STATEMENT.
Key Fact Statement (KFS) is a standardized pre-debt execution that will contain the following information –
– debt amount
– Total debt charge
– assurance, processing & other charges
– APR
– Amount to be paid by the borrower
– debt tenor & other essential details
– Grievance redressal information
Also, any fee not mentioned in the KFS cannot be charged to the borrower at any stage during the term of the debt!!
So ensure you are reading the KFS carefully and do not fall prey to these disguised loans!
Source: Guidelines on Digital Lending Circular – RBI/2022-23/111
DOR.CRE.REC.66/21.07.001/2022-23
#anushkarathod #financial #loans #digitalloans #RBI
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