To bring in transparency, the Reserve Bank of India on Thursday asked banks to display loan interest rates and processing fees on their websites from April 1.
"Banks should display on their websites the interest rate range of contracted loans for the past quarter for different categories of advances granted to individual borrowers along with mean interest rates for such loans," RBI said in a notification.
The total fees and charges applicable on various types of loans to individual borrower should be disclosed at the time of processing of loan as well as displayed on the website of banks for transparency and comparability and to facilitate informed decision making by customers, RBI said.
It also asked banks to publish Annual Percentage Rate (APR) or such similar other arrangement of representing the total cost of credit on a loan to an individual borrower on their websites so as to allow customers to compare the costs associated with borrowing across products and lenders.
Banks are also asked to provide a clear, concise, one page key fact statement, in a prescribed format, to all individual borrowers at every stage of the loan processing as well as in case of any change in any terms and conditions, RBI said.