Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
A standardised statement a lender must give a retail borrower before the agreement is signed, setting out the amount, tenure, charges and an all-inclusive annual percentage rate.
The document that exposes a processing fee deducted from the disbursal. A quoted interest rate hides it; an all-inclusive annual rate cannot.
The Reserve Bank's framework for lending through digital applications, requiring the regulated lender to be identified, money to move directly between the borrower's and the lender's bank accounts, a key fact statement before signing, and need-based data collection only.
Four mechanical tests you can apply to an app in a minute. An app that will not name its lender, routes repayment elsewhere or wants your contact list is outside the framework.
The all-in yearly cost of a loan, including interest and fees, expressed as a percentage.
The number that lets you compare a fee-based plan with an interest-based loan; regulated lenders must show it in the key fact statement.
A window after taking a digital loan in which you can exit by repaying the principal and proportionate cost, without penalty.
Required by the RBI’s digital lending rules; the lender states its length in the key fact statement.