| Name of Complainant | |
| Date of Complaint | February 23, 2023 |
| Name(s) of companies complained against | Cashwallet |
| Category of complaint | Internet Services |
| Permanent link of complaint | Right click to copy link |
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After seeing this cash wallet app ad on some other application I thought of applying for. Showing me a loan amount upto 50k, I was hoping to get a big loan from here. But after putting my entire details it starts showing a loan can be provided of 2000 for a 7 day period. I assume if I apply for it it will show me some details like interest rate, processing fee etc but I have not been presented any details till the application is complete.
Today I saw that my bank account had received an amount of 1300 rupees from ‘Sarkar Shoe House’ yesterday which I didn’t quite get so I started searching for it. I found that it came from the CashWallet app which I had mistakenly applied yesterday. In the search of the charges and fee for the loan I tried to apply again so that it could show me these details so applied again and without proper confirmation it got cleared and I was being approved for the second loan. The catch is that only after the application process gets completed and loan gets approved I was able to see the charges and processing fee and GST charges. The charges are quite high for the small loan. I have been charged 53% on the requested loan. Requested loan amount was 2000 INR and charges on it were: 530 processing fee, 13 interest, 157 GST APPROX. It is quite against the law to not show the details before the loan is being provided.
According to the RBI guidelines the bank or any lending company could not lend a loan without prior informing the details on interest rates, processing fee and GST charged.
On rbi.org.in it is written under the guidelines section as:
Loan application forms in respect of priority sector advances up to Rs.2.00 lakhs should be comprehensive. It should include information about the fees/charges, if any, payable for processing, the amount of such fees refundable in the case of non acceptance of application, pre-payment options and any other matter which affects the interest of the borrower, so that a meaningful comparison with that of other banks can be made and informed decision can be taken by the borrower.
However it has not been presented to me on applying to me nor i have accepted any of their terms and conditions before applying to the loan.
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