Mint Explainer | Why RBI’s draft rules could change how fintechs offer small loans
A Mint investigation in June found borrowers seeking emergency cash were routed through downloadable apps and browser-based loan pages to multiple NBFCs. Loans carried upfront deductions of 8-15% and tenures of 15-30 days. For instance, a Ram Fincorp loan sanction letter reviewed by Mint for a ₹30,000, 26-day loan listed ₹3,540 in upfront charges and total repayment of ₹41,340, an APR of more than 600%.
