Economy & Business MCQs - 2026-10-28

The cooling-off/look-up period allows borrowers a window to exit the loan by repaying the principal and proportionate Annual Percentage Rate (APR) without any penalty, should they decide not to proceed with the loan after understanding its terms. This empowers borrowers and protects them from impulsive decisions.

The Key Fact Statement (KFS) is a crucial requirement under the RBI's Digital Lending Guidelines. It ensures that borrowers are fully aware of all terms, conditions, and the all-inclusive cost (APR) associated with a digital loan, promoting transparency and informed decision-making.

The RBI's Digital Lending Guidelines mandate that loan disbursement and repayment must be executed directly between the borrower and the Regulated Entity (RE), such as a bank or NBFC, without any pass-through involvement of the Lending Service Provider (LSP). This enhances transparency and accountability.