RBI says all personal loans will, from Oct 2024, need to carry a Key Financial Statement that has the details of the actual interest rate, including all fees/charges of any loan. * no more hidden fees (can't charge what isn't mentioned) * digital loans need a look free prepayment period * colending details, fees of third parties must be disclosed * you can even ask for receipts for any legal or other charges at actuals Super new regulation! (Doesn't apply to credit cards) rbi.org.in/Scripts/Notifi…
@deepakshenoy Awesome !! They should also have added note on interest rates change, based on benchmark changes. It's ridiculous that people have to go to the bank and write a letter or something to get the loan rate reduced.
@deepakshenoy Most of these have already been put into practice since sometime by the established NBFCs. Refer the KFS from Parfait finance (Cred) of May 2023 where the compliance with this format is pretty decent. What will now happen is that the smaller NBFCs also will fall in line.
@deepakshenoy I believe in UK they have been following KFI for over 2 decades. Good move
@deepakshenoy Nice ... Personal loans from those dangerous apps too should be asked to follow....
@deepakshenoy This is a good move. All the il/legit DSAs info will be out.
@deepakshenoy Wasn't this already covered by the Digital Lending Guidelines issued in 2022? Anything specifically introduced anew?
@deepakshenoy @pikaso_me screenshot me this please
@deepakshenoy ROI, nd other charges get captured in sanction letter,no?