• English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
  • Punjabi

Loans Sourced by the Company through Digital Lending


by Mahindra Finance


June 23, 2023


2 mins read

The Company will, irrespective of whether they lend through their own digital lending platform or through an outsourced lending platform, adhere to this Fair Practices Code.

RBI vide its circular dated September 2, 2022, has issued “Guidelines on Digital Lending” (“RBI Guidelines”). As per RBI Guidelines, the Company will make following disclosure to borrowers or all digital lending products of the Company:

  1. Annual Percentage Rate (APR) will be disclosed as a part of the Key Fact Statement (KFS).
  2. The Company will provide a KFS to the borrower before the execution of the contract. Any fees, charges, etc., which are not mentioned in the KFS will not be charged by the Company to the borrower at any stage during the term of the loan.
  3. The Company will ensure that digitally signed documents will automatically flow to the borrowers on their registered and verified email/ SMS upon execution of the loan contract/ transactions.
  4. The Company will prominently publish the list of their Digital Lending Apps/ Platforms (DLAs), Lender Service Provider (LSP) and DLAs of LSPs with the details of the activities for which they have been engaged, on its website.
  5. The Company will ensure that its DLAs or DLAs of its LSPs at on-boarding/sign-up stage, prominently display information relating to the product features, loan limit and cost, etc., so as to make the borrowers aware of these aspects.
  6. The Company will communicate to the borrower, at the time of sanctioning of the loan and also at the time of passing on the recovery responsibilities to an LSP or change in the LSP responsible for recovery, the details of the LSP acting as recovery agent who is authorised to approach the borrower for recovery.
  7. The Company will ensure that DLAs of the Company and LSPs have links to Company’s website where further/ detailed information about the loan products, the lender, the LSP, particulars of customer care, link to Sachet Portal, privacy policies, etc. is available.
  8. The Company will ensure that it and its LSPs have a suitable nodal grievance redressal officer to deal with FinTech/ digital lending related complaints/ issues raised by the borrowers.

Related articles

How To Claim Home Loan Interest In Income Tax Return

Owning a home is a dream for many, but the journey often involves taking a home loan. The good news is that you can claim tax benefits on the interest you pay on your home loan. Understanding how to c...


April 18, 2024

The Inflation Challenge: Strategies For Maximizing Fixed Deposit Returns

Inflation is a force that affects every aspect of our lives, including our finances. It erodes the purchasing power of our money over time, making it essential to find ways to maximise our returns and...


March 4, 2024

5 Steps To Get A Car Loan Without Income Proof

Owning a car is not just about transportation, it represents unity, convenience, and cherished memories with loved ones. But what if you need a car loan without income proof? Many individuals face thi...


April 11, 2024