RBI Guidelines Reference

• The Reserve Bank of India allows lending institutions to charge a nominal fee for processing loans, provided the fee is fully disclosed to the customer at the time of application.
• The RBI’s Fair Practice Code encourages transparency in charging fees, with clear disclosure about the services offered and the refunds applicable.

4. Regulatory Compliance and Legal Framework

KMHF Services adheres to all applicable laws and regulations governing the financial services industry, including guidelines set by the Reserve Bank of India (RBI).The RBI allows financial institutions and non-banking financial companies (NBFCs) to charge fees for loan processing, as long as these fees are disclosed in advance and the refund procedures are transparent.

• RBI Act, 1934: Under Section 45 of the RBI Act, all lending institutions must ensure transparency in their loan security fees, including any security deposits or processing fees.

Fair Practice Code: In line with the Fair Practices Code, the Company ensures that all fees and charges are communicated clearly to customers and that the terms of repayment are explained upfront.

“As per the RBI’s Fair Practice Code, all customers must be informed about the processing fee, refund policies, and loan conditions before the loan agreement is signed.”

https://www.rbi.org.in/commonman/english/Scripts/Notification.aspx?Id=1572