RBI cautions people against unincorporated loan providers

RBI cautions people against unincorporated loan providers
PTI
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First Published: Tue, Aug 11 2009. 04 28 PM IST
Updated: Tue, Aug 11 2009. 04 28 PM IST
New Delhi: The Reserve Bank of India (RBI) on Tuesday cautioned the public to verify the credentials before dealing with entities promising various loans, saying there were cases where such entities disappeared after taking the processing fees.
The central bank said it noticed that certain entities are issuing a spate of advertisements in newspapers offering personal loans, loans against property and other loans, at a very low rate of interest.
“It has also come to the notice of RBI that some of these entities are cheating the public by charging processing fees upfront and disappearing thereafter,” the RBI said in a statement.
In the advertisements, these entities indicated their mobile phone numbers for the prospective borrowers to correspond, the bank added.
“Some entities also falsely claim to have been registered with the Reserve Bank of India,” it said.
Warning against the unincorporated bodies, the central bank advised people to exercise utmost caution while dealing with such entities and to verify the credential of those entities before dealing with them, the statement said.
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First Published: Tue, Aug 11 2009. 04 28 PM IST