The RBI released draft guidelines for regulating web-based loan aggregators by lending service providers (LSPs). These fintechs assist banks and NBFCs with customer acquisition, underwriting, and loan recovery. The framework was initially announced in December’s monetary policy statement.
The RBI highlighted that numerous lending service providers offer loan product aggregation services. In this setup, an LSP collaborates with multiple lenders, and its digital lending platform matches borrowers with lenders, sometimes without revealing the lender’s identity upfront.
In the draft circular, the RBI requested lending service providers / web-based loan aggregators to offer borrowers a comprehensive digital view of all available loan offers from willing lenders with whom the LSP has arrangements.
The RBI emphasized that lending service providers must adopt a consistent approach to determine lenders’ willingness to offer loans, disclosing this on their website. The digital loan view should include lender names, loan amounts, tenors, annual percentage rates, and key terms for fair comparison.
Each lender’s key facts statement link should be provided. Content displayed must be unbiased and not promote specific lenders or use deceptive practices to influence borrower choices, as per the RBI.