NBFCs and Gold Loans in India
Borrower Rights and Protections
Borrowers have rights to clear terms, fair recovery and grievance redress, whether they borrow from a bank or an NBFC.
Good borrowing starts with knowing your rights.
Clear disclosure
Lenders must give a key facts statement showing the interest rate, fees and total cost.
Fair recovery
Harassment and abusive recovery are prohibited.
Grievances
Complaints go first to the lender, then to the RBI’s ombudsman scheme.
Your duties
Borrowers should read documents and repay on time to protect their credit score.
A complaint
A borrower who is unhappy with recovery escalates the matter to the RBI ombudsman.
Signing without reading
Always check the total cost.
Key takeaways
- Lenders must disclose costs.
- Abusive recovery is banned.
- The RBI ombudsman handles complaints.
- Read before signing.
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