The Reserve Bank of India (RBI) is preparing to take major steps towards the rising defaults on small personal loans. This means if you fail to pay your loan EMI on time, the central bank will allow lenders to lock your smartphone, smart TV, and refrigerator. They can also stop your vehicle mid-way.

This rule primarily applies to consumers who have purchased smartphones or household items with personal loans up to Rs 1 lakh. Students and young people who are studying or working with phone loans, rural and urban low-income customers, will also be affected.

The RBI is currently discussing this proposal with banks, NBFCs, and stakeholders. It has not yet been implemented. Detailed guidelines will be developed to protect consumer interests before a final decision is made.

Add Zee Business a

See Full Page