RBI Fair Practices Code
The RBI Fair Practices Code (FPC) is a set of guidelines issued by the Reserve Bank of India to ensure transparency, fairness, and ethical lending practices by banks and NBFCs. LoanPao partners with over 500 RBI-compliant lenders who adhere to the FPC, protecting borrowers’ rights in India 2025.
What is the Fair Practices Code?
The FPC is a mandatory framework for all RBI-regulated lenders to promote fair treatment of borrowers. It covers loan application processes, transparency in terms, grievance redressal, and ethical conduct, ensuring a hassle-free borrowing experience.
Objectives of the Fair Practices Code
The FPC aims to:
- Promote transparency in loan terms and conditions.
- Ensure fair and non-discriminatory treatment of borrowers.
- Provide clear information on interest rates, fees, and charges.
- Establish efficient grievance redressal mechanisms.
- Protect borrowers from unethical practices like harassment or coercion.
Key Guidelines of the Fair Practices Code
The FPC outlines specific guidelines for lenders:
| Guideline | Description |
|---|---|
| Loan Application Process | Lenders must provide clear information on eligibility, documents, and processing timelines. |
| Transparency | Disclose interest rates, processing fees, and other charges upfront in writing. |
| Non-Discrimination | Treat all borrowers equally, regardless of gender, caste, or religion. |
| Grievance Redressal | Maintain a mechanism to address borrower complaints within 30 days. |
| Repayment Terms | Provide flexible repayment options and clear prepayment/foreclosure policies. |
| Ethical Recovery | Avoid coercive recovery methods; follow RBI guidelines for debt collection. |
How LoanPao Ensures FPC Compliance
LoanPao partners only with lenders who adhere to the RBI’s Fair Practices Code, ensuring:
- Verified Lenders: All 500+ lenders are RBI-registered banks or NBFCs.
- Transparent Terms: We provide clear comparisons of loan terms using our EMI calculator.
- Borrower Support: Our team assists with queries and complaints at +91-971-769-5334.
- Secure Process: Applications via our online form are processed securely with full transparency.
- Grievance Redressal: We guide borrowers to lodge complaints via the RBI’s CMS portal if needed.
Benefits for Borrowers
The FPC ensures borrowers enjoy:
Protection
Safeguards against unfair practices and hidden charges.
Transparency
Clear disclosure of loan terms and costs.
Support
Access to efficient grievance redressal mechanisms.
How to Verify Lender Compliance
Ensure your lender follows the FPC by:
- Checking RBI Registration: Verify the lender’s registration number on the RBI website.
- Reviewing Loan Agreements: Ensure all terms (interest, fees, repayment) are disclosed in writing.
- Assessing Grievance Mechanisms: Confirm the lender provides contact details for complaints.
- Consulting LoanPao: Use our platform to connect with FPC-compliant lenders.
- Reporting Issues: Lodge complaints via the RBI’s CMS portal for unresolved issues.