YOUR REQUESTS: LOANS: Thinking of taking out a loan from an application-based Ipass direct lender loans? Advance with caution

The HFC variable rate criterion is not covered by repo rate Ipass direct lender loans

By Chaitali Dutta

What factors should you keep in mind when taking out a loan from an app-based lender?
—Vikas Malhotra
In India, nearly 50% of quick loan applications were found to be illegal by a task force study initiated by RBI earlier this year. It has been observed that there is not enough transparency on the process followed for the sanctioning of loans. In several cases, the borrower’s documents and sensitive information gathered at the time of the sanction were misused by the company. In the event that the borrower is duped or harassed by the loan sanctioning company, he should go to the consumer forum for redress rather than, for example, a banking mediator, where rules and governance are defined and must be followed by banks.

From a consumer perspective, the ease of access to funds, quick turnaround time, and application done without leaving the house make this route a very attractive proposition. On the other hand, there is a tendency to fall into the debt trap and borrow more than what can be repaid monthly. The threat to sensitive data should be kept in mind while opting for such application based Ipass direct lender loans"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>Ipass direct lender loans. Look for large and well-known players in this market who have credibility and a longer lending history.

I benefited from a variable rate loan. Why does the HFC insist that I pay a fee every time to lower the interest rate?
—Anju Singh
These caveats are mentioned in the letter of arrangement and the loan is governed by the agreed terms and conditions. The HFC variable rate criterion is not covered by repo rate loans. The latter is transparent. Try to transfer the loan to such a bank.

I took a loan of Rs 16 lakh from HDFC in March 2020. I made a partial payment of Rs 4 lakh in February 2021 and applied for a PMAY grant the same month. Can I get the grant now? And if I prepay Rs 2 lakh again, will I be entitled to this subsidy?
—Zénath Jahan
Yes, it is possible for you to apply for a PMAY grant now if you fall under LIG / EWS. However, after your grant application, if you repay an amount, the prorated grant amount must be returned by you.

The writer is founder,
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