Borrowers are baffled and confused when signing loan documents. These documents have critical clauses scattered all across. The terms, too, are written unclearly. Now RBI has introduced a significant change in how these documents will be written.
The move is one of the measures to enhance the customer centricity and also to enhance transparency measures. The possibility of levying any hidden charges by a lender on a loan will be greatly reduced because of this. The actual annualised interest rate will also include one-time charges and other charges that are levied by the banks and NBFCs.