The Reserve Bank of India (RBI) on Wednesday warned people about the instant and unauthorized mobile apps available on easy loans. According to the RBI, people can get into debt by taking loans from such mobile apps or digital platforms.
According to the RBI, there are many allegations that small businesses and people in trouble are having trouble getting loans from such digital platforms. Such lending institutions are claiming higher interest rates after loan approval and forcing borrowers to pay fees that they did not disclose in the first place.
In addition, such unauthorized apps are misusing the terms of the loan so people are also taking illegal steps to repay the loan. So the RBI has warned people to stay away from easy loans from such apps. The RBI has suggested that it may take a direct contact with an RBI-approved bank or non-banking financial institution (NBFC) in case of financial need.
Similarly, if any mobile app provides financial services to a financial institution or bank, the bank and NBFC should inform the bank in advance, he said. The RBI has advised that the general public can go to the RBI’s website and collect all the information of the NBFC.
Image Source : Google