Exclusive: RBI may tighten norms for loan aggregator platforms; misleading practices under scrutiny

The Reserve Bank of India (RBI) is considering tightening rules for digital loan aggregator platforms amid rising complaints about misleading practices and incomplete disclosures, sources told Zee Business. 

According to sources, several platforms are failing to provide customers with critical details, such as:

• The lenders offering the cheapest loans 
• Interest rates across options
• The lenders offering the fastest disbursals
• Processing fees and other hidden charges

In some cases, these platforms are allegedly using “dark patterns”—or deceptive design techniques that nudge users into unintended decisions. Common examples of such occurrences include:

• The use of phrases like “loan approved” for a pre-approvals
• Displaying interest rates in the fine print
• Revealing processing fees only at the final stage
• Designing options in a way that customers may accidentally pick a less favourable product

The RBI sees such practices as a serious concern from a consumer protection standpoint and may soon take a tough stance, according to the sources.

According to sources, the central bank could either issue fresh guidelines or enforce stricter norms under existing regulations.

At the core of the regulator’s efforts is the goal to ensure that borrowers:

• receive clear and complete information upfront;
• are not misled by hidden terms or charges, and 
• can make informed, rational financial decisions.

The move is expected to bring more transparency and accountability to India’s fast-growing digital lending ecosystem.