Lending Apps Will Have To Follow The Guidelines Of RBI
Loan giving apps will have to follow the guidelines of Reserve Bank of India.
Personal loan app developers will have to follow the new guidelines by September 15, 2021.
New Delhi. Preparations to curb the deadly merger of easy loans. Google has started tightening the noose on personal loan apps in India. Google said that personal loan app developers will have to follow the new guidelines by September 15, 2021. The guidelines have been made by the Reserve Bank of India (RBI).
Under Google’s new policy, the RBI’s license to grant loans to app developers, minimum and maximum loan repayment period, interest rates along with other fees and total loan cost will have to be given to users before taking the loan. The Delhi High Court recently took a tough stand on the issue of online lending, saying that online lending platforms cannot be allowed to charge such high interest and processing fees on short-term loans. The court has asked the central government and the RBI to curb such platforms.
30 to 35 percent annual interest –
Many personal loan apps have spread in the country, which are looting people on the pretext of giving online loans. By downloading such an app from Play Store, the condition is accepted that the user will have to share personal details and contact list for the loan. These apps give loans up to 50 thousand at a very high rate (30% to 35%) without any income proof minutes. For not paying the installments on time, they levy a penalty of 2 to 3 percent every day. Many apps deduct 20 to 22 per cent of the amount in the name of processing fee and GST even before giving the loan.
That’s how they get caught in the trap –
Telecallers of 20-30 apps call the user and tell him that because of his good record, the company wants to give him a loan. Customers take a new loan to repay the old loan and keep getting caught in this maze.
Difficult to live with recovery agents
Telecallers and recovery agents of these apps call the users and threaten them if the loan is not repaid. Their family members are also threatened. There have also been cases of sending porn clips to the women of the family. Angered by such social humiliation, many people have committed suicide in Telangana and Andhra Pradesh.
RBI Guidelines –
RBI has cautioned people to avoid taking online instant loans. Before taking a loan, check whether the company has got its license or not. As per RBI guidelines, family or friends/relatives cannot be called for loan recovery.
Magazine View –
The old-fashioned usurper Mahajan is now appearing in a digital avatar. Artificial intelligence technology is a boon for them. By using it, they find out who is struggling with money crunch. They start preying on people who are unaware or semi-acquainted with the digital world. It is difficult to understand their complex terms while giving loans. Generally, the borrower unknowingly agrees to those terms in the same way as the moneylender used to get his thumb done earlier. It is necessary to crack down on such online money lenders, otherwise their debt trap will take the form of a big problem.
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