Law & Governance

Online Lending Platforms Cannot Charge Exorbitant Interest: HC

BP World Bureau | Jul 28 2021 11:58:57 AM
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Delhi High Court stated that online lending platforms cannot be allowed to charge exorbitant interest and processing fees. HC asked Centre and RBI to look into the issue.

Online lending platforms offer short-term personal loans through mobile apps.

HC added that it expects that the Union government and RBI will come out with some solution by the end of next month. 

Bench of Chief Justice D N Patel and Justice Jyoti Singh said that an expert body is required to take a look at the difficulties. 

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PIL was filed in HC seeking regulation of online lending platforms offering short-term personal loans, citing massive interest rates. PIL mentioned that lending platforms are allegedly humiliating and harassing people in case of delay in repayment.