Disclosure of information relating to loan processing fees & charges - RBI Notification

The Reserve Bank of India issued a notification on November 12, 2010, where it has advised all scheduled commercial Banks and Financial Institutions to transparently disclose all the information about Fee/charges payable for processing/sanctioning the loan application, amount of fees refundable in case of rejection of loan application, pre-payment charges, conversion charges etc.  Such informations should also display in the websites of the Banks for all categories of loans.

The Banks should disclose “all in cost” including all charges involved in processing/sanction of loan application in a transparent manner to enable the customer to compare the fees/rates charged with other sources of finance.