look news india
New guidelines of RBI: Customers who repeatedly take more than one personal loan may face difficulties. RBI has ordered banks and financial institutions to submit credit bureau records of borrowers every 15 days instead of once a month. This will help in correctly assessing the risk of the borrowers.
what will be the effect
According to experts, many personal loan borrowers pay loan installments on different dates every month. Whereas banks and financial institutions update the credit record report only once a month. Therefore, if any installment is missed, it is reported late by 40 days. To eliminate this delay and to assess risk more accurately, RBI has made it mandatory to release credit record reports every 15 days. So that defaulters can be reported easily and quickly.
People will be restrained from taking loan on loan
Financial institutions said, this change will reduce the cases of evergreening. In which the borrower takes a new loan to repay the old loan if he fails to repay it. The result is that the debt burden increases. This step provides relief to the borrowers at that time. But the risks are higher for banks and financial institutions. And the debt also increases in future. In such a situation, due to the new guidelines of RBI, there will be a brake on people taking loans. RBI had issued this instruction in August. Lenders were given time till January 1 to update credit bureau records in their systems.