Personal loans, May 14 -- The Reserve Bank of India (RBI) issued directions on digital lending on May 8 which - among other things - address the issues relating to multiple lenders. It is quite common for loan service providers (LSPs) to partner with banks and NBFCs (non banking financial companies) and roll out digital loans to borrowers.

With regards to aggregation of loan products from multiple lenders,RBI had invited comments on the draft circular on April 26. Based on the comments received, RBI has now issued final instructions on the same as part of these directions.

In cases where a lending service provider has tied up with multiple regulated entities or REs (banks and NBFCs) for digital lending, each RE will make sure of the fol...