Understand today.
Borrow with clarity.
Loan costs, repayment responsibilities and your rights, explained.
Start with the essentials15% p.a. on a reducing balance. Fees excluded.
An example to explain costs, not a loan offer.
Know what you’re agreeing to.
Read the complete terms before deciding.
Understand.
Keep a copy.
- 01
Key Facts Statement
Check amount, APR, charges and repayment dates. APR shows the annual cost including applicable charges.
- 02
Sanction letter
Review the approved amount, tenure, rate, conditions, security and missed-payment charges.
- 03
Loan agreement
Read obligations, payment terms and closure conditions. Ask questions before signing and retain your copy.
Get fees, taxes and insurance costs in writing. Check which additional products are optional.
RBI: Key Facts Statement and APR ↗An education loan EMI. Two parts.
An Equated Monthly Instalment repays part of the amount borrowed, plus interest on the outstanding balance.
Start with a loan amount of ₹1,00,000, an annual rate of interest of 15% and a tenor of 1 year. Adjust these inputs to see your monthly EMI and how each instalment is split between principal and interest.
₹1,00,000 · 15% p.a. · 12 months (1 year)
A missed date matters.
Overdue status starts when an amount due remains unpaid at the lender’s day-end processing on its due date.
Early overdue stage
Continuing overdue
Further deterioration
Non-performing asset
SMA means Special Mention Account. These are continuous overdue periods for general term loans, not grace periods. Classification uses the relevant day-end process. Specific facilities may follow different rules.
An unpaid instalment due on 31 March
- 31 MarOverdue at day-end
- 30 AprSMA-1 at day-end
- 30 MaySMA-2 at day-end
- 29 JunNPA at day-end
RBI’s illustrative sequence assumes the dues remain continuously unpaid.
Getting back to standard
For an NPA caused by repayment arrears, the entire overdue principal and interest must be cleared. Where you have several credit facilities with the same lender, this applies to arrears across those facilities. A partial payment alone does not restore standard status.
Cash credit or overdraft?
Different “out of order” tests apply, including sustained excess over the limit or drawing power, and insufficient credits. Ask your lender how these rules apply to your account.
Protect your credit. Know your rights.
Review your credit report regularly. Raise errors with the lender and credit bureau.
A history you can influence.
A score is one input in a lending decision. It does not guarantee approval.
Habits that help
- Pay agreed instalments on time.
- Keep credit utilisation manageable.
- Check balances and repayment records.
Things to watch
- Overdue or missed payments.
- Repeated applications in a short period.
- Settlements reported instead of full closure.
After authentication, individuals can request one free full report each calendar year from each bureau holding their credit history.
RBI: your free annual credit report ↗What you should expect
Terms you can understand. Written costs, conditions, repayment details and notice of applicable changes.
Respectful treatment. Recovery must not involve intimidation or harassment. RBI prohibits recovery calls before 8 am and after 7 pm under its applicable recovery-agent instructions.
A route to raise concerns. Keep copies of your complaint and the lender’s response. For eligible complaints against entities covered by the RBI Ombudsman scheme, escalation may be available after an unsatisfactory response or no response within 30 days (or a longer response period where the applicable rules specify one).
Close the loan. Complete the paperwork.
Prepayment pays early; foreclosure clears the full outstanding amount to close the loan.
- 01
Request a statement
Get principal, interest and applicable charges calculated to a specified date.
- 02
Confirm the cost
Check the applicable prepayment rules and your loan terms. Charges and exemptions depend on factors such as rate type, purpose, lender category and sanction or renewal date.
- 03
Collect confirmation
Collect the closure certificate and arrange return of documents or release of security, as applicable.
- 04
Check the credit record
Confirm closure is reported. Follow up if your credit report is not updated.
Get the final payable amount in writing before transferring funds. Verify payment instructions through an official contact channel.
Pause before you share or pay.
Pressure, secrecy and requests for access to your money are reasons to stop and verify.
Check the recipient
Verify official payment instructions. Avoid loan fees to personal accounts or UPI IDs.
Check the app
Verify the app’s lender association and official source. An app-store listing alone is insufficient.
Check the request
Receiving money needs no UPI PIN. Avoid unknown collect requests and callers’ remote-access apps.
Act immediately.
Contact your bank or payment provider. Keep transaction references, messages and screenshots.
A little more context.
Know why identity checks are needed and where to find reliable financial information.
One record. Easier verification.
CKYC stores your identity-verification record. A 14-digit KYC Identifier helps participating institutions retrieve it, subject to applicable requirements.
Updates or additional documents may be needed. Confirm accepted documents and use a verified secure channel.
Central KYC Records Registry ↗Who oversees what?
RBIBanks, NBFCs and payment systemsSEBISecurities markets and mutual fundsIRDAIInsurancePFRDANational Pension SystemFor business borrowers
MSME classification uses both investment and turnover. Check the current criteria before choosing a category or registering.
Official Udyam registration portal ↗About deposit insurance
Eligible bank deposits have DICGC cover up to ₹5 lakh per depositor per bank, including principal and interest in the same right and capacity. This is not protection for a loan or a guarantee of an NBFC product.
DICGC deposit insurance information ↗