.jpeg)
The Reserve Bank of India (RBI) introduced sweeping reforms to the personal loan ecosystem in 2025 to protect borrowers from hidden charges, unethical recovery methods, and data misuse. Whether you're borrowing digitally or through NBFCs, these new rules are designed to make the process safer, fairer, and more transparent.
At Vizzve Finance, we're already aligned with the RBI's latest digital lending framework—because your trust matters.
Key RBI Personal Loan Rules in 2025
1. Digital Lending Guidelines (May 2025 Update)
The RBI has strengthened its Digital Lending Directions to regulate Digital Lending Apps (DLAs), Lenders, and Lending Service Providers (LSPs).
Mandatory Key Facts Statement (KFS)
Every borrower must receive a standardized KFS that clearly explains interest rates, fees, repayment schedules, foreclosure charges, and more.
Direct Loan Disbursement
Loan funds must go directly into the borrower’s bank account. No third-party wallets or agents.
No Hidden Recovery Fees
Borrowers will repay directly to the lender's account—LSPs cannot charge or collect repayment fees.
One-Day Cooling-Off Period
You can cancel the loan within 24 hours if you change your mind, with no penalties except minimal processing fees.
Transparent Loan Matching
Loan apps must display matching offers using fair algorithms, avoiding manipulative practices.
2. Ban on Penal Interest for Late EMIs (Effective June 15, 2025)
The RBI has prohibited penal interest charges on late EMI payments.
Lenders can no longer add extra interest as a penalty.
Only a nominal late fee is permitted.
Helps protect borrowers from compounding loan burdens.
At Vizzve Finance, we’ve already implemented this rule—no hidden charges, no surprise penalties.
3. Data Privacy and Consent Norms
DLAs can only access personal data with explicit user consent.
No call log access, contact harvesting, or storage of sensitive info.
All data must be stored in India. Overseas servers must delete data within 24 hours.
We at Vizzve Finance follow the highest standards of data security to protect your privacy.
4. Grievance Redressal Mechanism
Lenders must provide a clear escalation path for complaints.
Every platform must have a designated Nodal Officer.
Borrowers can escalate to RBI if unresolved within 30 days.
Vizzve's support team ensures swift redressal within 24–48 hours.
5. Fintech Lending Controls & Default Guarantees
NBFCs can’t depend on FinTech firms for default loss guarantees (DLG) anymore.
This strengthens accountability of NBFCs and ensures genuine borrower-lender relationships.
How Vizzve Finance Keeps You Protected
We’ve built Vizzve Finance to be a borrower-first platform, fully compliant with all 2025 RBI mandates:
✅ No hidden fees
✅ KFS with every offer
✅ Transparent APR display
✅ One-click EMI calculator
✅ Fast disbursal to your bank
✅ 100% RBI-compliant privacy policies
✅ No penalty interest on late EMIs
CTA:
Apply for a Personal Loan with Confidence
Experience safe, penalty-free borrowing with full transparency.
👉 Apply Now with Vizzve Finance
FAQs
1. What is the cooling-off period under RBI's new rules?
You can cancel your personal loan within 24 hours of disbursal with no penalties, except nominal charges.
2. Will I be charged extra for late EMI payments?
No. RBI has banned penal interest on overdue EMIs from June 15, 2025. Only a nominal late fee may apply.
3. How do I know my loan app follows RBI rules?
Check for Key Facts Statement, transparent disbursal, and grievance redressal features. Vizzve Finance complies with all RBI guidelines.
4. Can loan apps still access my contacts or call logs?
No. RBI prohibits access to sensitive data without explicit consent. Apps violating this are subject to penalties.
5. What if I face issues with my lender?
Every RBI-regulated lender must have a grievance officer. If unresolved, you can escalate to RBI’s complaint portal within 30 days.
Published on : 22nd July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed