Taking a loan? This small paper can save you big

Synopsis
Borrowers are baffled and confused when signing loan documents. These documents have critical clauses scattered all across. The terms, too, are written unclearly. Now RBI has introduced a significant change in how these documents will be written.

When Apurva Palande, a 28-year-old Mumbai resident, decided to take an INR10 lakh car loan in July last year, he had only three questions – what is the EMI amount, the loan tenure, and prepayment terms. “I just looked for these three details before signing. Honestly, I did not read the terms and conditions documents, which were printed in really small font size,” he says. Like Palande, many borrowers do not fully read the loan documents, relying

( Originally published on Apr 24, 2024 )