As we enter 2025, it is time to have a look at RBI’s policies and rules to make sure you are updated with their regulations. The Reserve Bank of India has introduced some new rules, which are effective from January 2025. Apart from this, there are some other rules and policies that continue to be in effect.
These changes might impact your instant loan eligibility. with all its credit-related rules and policies, RBI aims to make financial processes more accessible and convenient for the users.
Let’s dive deeper into this and discuss some of the latest credit rules introduced by RBI, which are important for consumers as well as lenders, including banks, NBFCs, and instant small loan apps:
Lets Discuss Some of the Latest Credit Rules Introduced by RBI
Rule 1: Credit Score to be Updated Every 15 Days
The RBI has announced a major update, which mandates more frequent credit score updates. Starting from January 1, 2025, banks and financial institutions need to update their customers’ data every 15 days.
They need to send this data to the credit bureaus or credit information companies (CIBIL, Experian, Equifax, or CRIF Highmark) as soon as possible so these bureaus can update consumers’ credit scores more frequently.
So, from now on, credit scores will be updated twice every month, i.e. on the fifteenth and the last day of every month. If you have borrowed any instant loan, credit card, or larger credit, you need to be more careful about your payments and credit utilization now.
Rule 2: Mandatory Credit Check Notifications to Consumers
This rule was first introduced by RBI in October 2023 and it still remains relevant in 2025. RBI has made it mandatory for every lender, including banks and NBFCs, to send credit check notifications to consumers whenever they access their credit reports.
So, if any lender performs a credit check to determine an applicant’s instant loan eligibility, they have to inform the same to the applicant.
With this, RBI ensures that every consumer stays informed about who is accessing their credit reports and when. Consumers receive an SMS or email whenever a hard inquiry is made on their credit report, i.e. their credit report is checked by a lender.
Rule 3: Clear Reasons for Rejection of Credit Application
As per RBI, if a lender rejects a customer’s credit card or loan application, the customer should be provided with a clear reason for rejection. Be it a large bank, NBFC, or instant small loan app, this rule is applicable to every small and big lender.
The applicant must know which factors contributed to rejection. If there are multiple reasons, the lender is responsible for listing all the reasons clearly and communicating the same to the applicant.
This will help consumers understand the reasons for denial and improve those factors to avoid rejection in future.
Rule 4: Advance Default Notifications
RBI also makes it mandatory for all the lenders to notify the consumers about their payment defaults before reporting it to CICs. It means if a consumer has missed a payment, the respective bank or lender will send them multiple reminders and notifications before reporting the payment default.
The lender should send all the relevant information to the borrower in SMS or email. Apart from this, the bank or financial company should appoint nodal officers to redress the customer grievances (if any).
Rule 5: Timeline for Complaint Resolution
Keeping consumer rights in mind, RBI mandates all the credit companies (including lenders and credit information companies) to resolve customer complaints within 30 days. This timeline is divided into two parts, including 21 days for the lender (bank or NBFC) and the credit information bureau.
If the complaint is not redressed within this period, the responsible credit company is penalized Rs. 100 per day until the issue is resolved. If the lender has made adjustments on time, the credit bureau might even need to compensate the customer for an additional nine days of wait.
This allows consumers to get their queries resolved within 30 days whether they have borrowed from an instant small loan app or a larger bank.
Will These Changes Impact Your Instant Loan Eligibility?
These rules and updates by RBI might not have a direct impact on your instant loan eligibility. However, as consumer credit scores will be updated twice every month now, you need to be more careful with your payments.
Also, make sure to maintain a good credit utilization ratio (preferably below 30%) at any point of time. This will help you maintain an ideal credit score, which further impacts your loan eligibility.
If your low credit score or small credit history becomes a hurdle, you can try FatakPay for instant loans. FatakPay is a trusted platform that provides instant small loans, even to those who have low to average credit score.
If you have any further questions regarding the information provided above or regarding FatakPay instant loans, feel free to reach out to us at [email protected]!
FAQs
Ans. RBI’s new credit rules do not directly impact a user’s instant loan eligibility. It’s just that as your credit score will be updated more frequently now, you must keep a regular check on your credit profile to maintain the score. Delaying payments even for just a few days now can be reported by credit companies, which will negatively impact your credit score and loan eligibility.
Ans. The eligibility criteria for instant loans depend more on the lenders and financial institutions; not on RBI. Some major factors that affect eligibility criteria for instant loans include:
Age: You should be at least 21 years old (it’s 18 years in some cases)
Income: You should have a stable source of income
Credit Score: You should have a decent credit score (the minimum credit score requirement varies for every lender).
RBI comes into play in the application process. The lenders now need to inform individuals every time their credit report is accessed. Moreover, if your application is rejected, the lenders need to clearly specify the reason for rejection.
Ans. Yes, the above-mentioned RBI rules apply to all types of loans and all the lenders and financial institutions.
Ans. The process to check your eligibility for instant loans still remains the same as RBI’s new rules are not related to loan eligibility. You can just check the eligibility criteria specified by respective lenders and see if you fulfill that or not.
