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Steps to follow for NBFC loan: In today's era, as loans are available quickly and easily, most people prefer to borrow for their needs. Among these, fintech companies, NBFCs are preferred over banks as they offer faster loans with fewer documentation. But customers need to be careful while taking loans from fintech NBFCs, as it can often turn out to be a loan headache, like a death sentence for the joy of speed.
Does the Fintech comply with FIDC guidelines?
You must first check whether the fintech NBFC from which you want to take a loan follows the Financial Industry Development Council (FIDC) guidelines or not. Ashish Sharma, Vice President and Business Head, PayU Finance, said that it is important for the loan giving company to convey the important details related to the loan to the customer. This includes interest rates, fees and payment schedule. You have to take a decision only after fully understanding and being satisfied.
How does the Fintech company behave in loan recovery?
Second, consumers should check how the fintech company handles loan recovery. However, this is hard to know. But, verify if possible. This is because many fintech NBFCs transfer the loan money to the customer's bank account immediately. But, if for some reason the customer does not pay the loan EMI on time, they misbehave. There have been cases of fintech company employees calling and threatening customers. Get detailed information about the NBFC to avoid incidents like intimidation and harassment of customers for failing to pay EMI.
Does the Fintech company issue KFS to the customers?
NBFCs should be preferred for taking loans, as they issue Key Facts Statement (KFS) to their customers. Many NBFCs and fintech companies have started offering KFS to customers. From October 1, it will be mandatory for all banks, NBFCs and fintech companies to issue KFS to customers. KFS is a document that contains all the terms and conditions related to the loan.
Are the loan interest rates reasonable?
The biggest problem comes with the interest rates. Therefore, before taking a loan immediately, you should check what the interest rate of the loan is. Many times customers do not pay much attention to the interest rate in the hurry to get a loan quickly. Later they come to know that they have taken a loan at a very high interest rate. On complaining to the fintech company, its answer is that the loan is given to the customer only after his consent. In such a situation, the customer has no option but to pay a large amount in the form of interest.
