BORROWERS BEWARE

Don’t pay any fees or any other additional charges to the Lending Service Provider (LSP)

Credit limit cannot be increased without the explicit consent of the borrower

The loan agreement should contain a cooling-off period during which borrowers can exit digital loans by paying the principal and the proportionate APR (annual percentage rate) without any penalty

To raise their grievances and complaints, borrowers can reach out to nodal grievance redress officers engaged by the regulated entities and the LSPs. (The details of the officers can be found on the websites of regulated entities and LSPs and lending apps

A borrower can also complain against their digital lending mobile app

The complaint should be resolved within 30 days; in case it’s not, the borrower can directly reach out to RBI

Digital lending apps cannot collect user data without explicit consent of the borrower and such data collection should be needbased and show clear audit trails

A borrower will have the option to accept or deny consent for the use of specific data, including the option to revoke previously granted consent, besides an option to delete the data collected from borrowers by the lending apps or LSPs