RBI sets draft norms for web aggregators of loan products

The Reserve Bank of India (RBI) has proposed that banks and non-banking finance companies (NBFCS) should ensure that their loan service providers (LSPS) to provide a digital view of all the loan offers available to the borrower from all the willing lenders that the LSP has arrangements.

The digital view, the RBI said, should include the name of the bank of the NBFC extending the loan, the amount and tenor of loan, the annual percentage rate and other key terms and conditions in a way that enables the borrower to make a fair comparison between various offers.

The RBI set these terms in the draft guidelines for the regulatory framework for the aggregation of loan products by lending service providers (LSP) in order to enhance transparency and enable borrowers to have prior information about potential lenders. While the LSP can adopt any mechanism to ascertain the willingness of the lenders to offer a loan, the RBI said it should follow a “consistent approach” that must be disclosed suitably on their website.

A link to the key facts statement (KFS) must also be provided in respect of each of the regulated entities, it said.