Keep these things in mind while taking a loan from the digital app, lest it becomes a burden on you.

 

Many times such a situation comes in our life that we get trapped in a financial crisis. To withdraw it, we have to take the help of a loan. In the era of digitalization, you can also take a loan with one click. Many apps are ready to give you a digital loan. Through these apps, you also get loans easily. 

Digital Apps have made the process of borrowing very easy and convenient nowadays. But sometimes you can also be a victim of fraud. In such a situation, some things must be kept in mind while applying for a loan through a digital app. First of all, get this information that who are the lenders. RBI has implemented a guideline for the disbursement of loans in a digital way. 

According to this guideline, all banks, co-operative banks, including state and district co-operative banks are also included in this. NBFC as well as Housing Finance Company has been included. Along with this, digital loan disbursers have also been included in collaboration with banks and NBFCs. If this is your first experience with taking a loan through a digital medium, do check the charges levied by the lender before availing of the loan. 

Borrowers should read the fact statement carefully. The customer must know the cost of borrowing the annual interest rate application fee, the processing fee, and the late payment fee on the loan. Apart from this, whatever loan is being digitally taken by you by the bank should come into your account. Once your loan is approved by the bank, the loan amount should not go to any third party or any other account and the amount should go directly to your bank account. 

After the loan is sanctioned by the borrower customer, all the necessary loan-related information is given by the customer to the bank by email and phone number, such as key element details, bank account details, information about the privacy policy of the loan service provider In this, the sanction letter i.e. approval letter, domain connection, EMI information, account details should be given along with the loan product.

 

Same you should also know about the cooling-off time. Let us first understand what is cooling off time. The cooling off time is the time in which the borrower can withdraw from the loan process by repaying the principal amount and the annual interest rate to the bank without paying any penalty amount. Banks and NBFCs have been given the freedom by RBI to set cooling off time accordingly.

 

RBI says that there should be one day cooling off for loan tenure less than seven days. The same should be of three days on loan tenures exceeding seven days. As per the guidelines of RBI, the main element details i.e. the subsequent statement should contain information related to payment and penalty. It should mention the rate of penal charges and pre-payment charges if any.

 

The digital loan app is not allowed to charge any fee if it is not mentioned in the statement. Only the main lenders which are banks and NBFCs are allowed to charge the borrower. Now let us also know that if you are taking a loan with the help of the Digital Loan app and you are facing a problem in some way, then where can you complain about this problem?

 

So tell that its complaint can be made to the Nodal Grievance Redressal Officer. You will find the contact details of the Nodal Grievance Redressal Officer on the key fact statement. If not available there, you will find it on the website of the bank, NBFC, and loan apps.

 

If there is no resolution within 30 days of registering the complaint, you can register your complaint under the Integrated Ombudsman Scheme of RBI. While giving a loan with the help of the Digital Loan app, it is necessary to take the consent of the person lending you the data of the lender. The borrower has full freedom whether he wants to share his data with any other party or not.

 

Apart from this, the loan-providing app cannot store any biometric data of the customer. All customer information will also be deleted when you install second Loan app. According to RBI guidelines, the customer allows information like camera, microphone, and location of his phone only for KYC.

 

Banks and NBFCs providing loans to the customer should ensure that their app fully complies with the standards designed to avoid cyber security risks. The Bank follows the updated standards related to cyber security from time to time. The bank keeps the data of its customers secure. Also prevents it from being misused in any way. 

So you must also keep all these things in mind before taking a loan from any Digital App. If you like the information, please comment on our site www.tradeipohub.co.in. and don't forget to share with your friends. Thanks for reading.