Lending service providers may have to provide digital view of all offers: RBI

economictimes.indiatimes.com:

RBI) Friday proposed asking lending service providers (LSP) to share information in digital form about all the loan offers available to the borrower from all the willing lenders with whom they have lending arrangements.
The banking regulator proposes this in a draft guideline on 'digital lending — transparency in aggregation of loan products from multiple lenders.'
The RBI draft stated, «The LSP shall provide a digital view of all the loan offers available to the borrower, as per his/her requirements, from all the willing lenders with whom the LSP has arrangements with.»

The RBI move follows an observation that many LSPs offer aggregation services for loan products, wherein an LSP, or a Regulated Entity (RE) acting as an LSP.

RBI observed that many (LSPs) connect borrowers with multiple lenders, but the borrower might not know which lender they're matched with upfront.
The draft suggested that the digital view must include the name(s) of the RE(s) extending the loan offer, the amount and tenor of the loan, the annual percentage rate (APR), and other key terms. This should enable the borrower to make a fair comparison amomg various offers. The regulator stated that a link to the key facts statement (KFS) shall also be provided in respect of each of the REs. The RBI also stated that LSP should display unbiased content and shall not directly/indirectly promote or push a product of a particular RE.