The Reserve Bank of India (RBI) has warned against believing false advertisements about loan repayments. In recent times, there has been an increase in false and misleading advertisements on social media regarding loan repayments. These ads promise free or low-cost debt relief.
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| Loan related false advertisement, |
In its statement, RBI said, "Loan waiver is a complex process. It depends on various factors like borrower's credit history, loan amount, interest rate etc. Advertisements claiming free or low cost loan waiver assistance are false and misleading."
The RBI has advised borrowers seeking loan waiver assistance to approach only reliable institutions. Information about loan waiver agencies can be obtained from RBI's website.
Borrowers who believe in false advertisements about loan installments can face various problems. Their credit history may suffer. They may have to pay additional fees. In some cases, they may face legal action.
If you come across false advertisements regarding loan waivers, you should report them to RBI immediately.
These companies misrepresent to the public that they do not need to repay their dues to financial institutions including banks.
This affects the stability of banking and alternative financial institutions and also destroys the welfare of customers who have money in the bank.
So, public should not fall financial prey to false propaganda. Also, association with such companies will result in direct financial losses. Instead of reporting such companies to the law enforcement agencies, the Reserve Bank of India is appealing to the public.