The RBI’s new rules about phone loans and emi payments:
📱 taken a phone on loan? Pay emi on time or your handset could be lockedWith the rising trend of buy-now-pay-later and phone loans, many consumers are enjoying the convenience of getting the latest smartphones without paying upfront. However, the reserve bank of india (rbi) has issued warnings about a new feature lenders are using: phones can now be locked if emis are not paid on time. Here’s what you need to know.🔒 1. How phone locking worksSome lenders pre-install apps on the phone purchased on loan:These apps monitor emi paymentsIf a borrower defaults on payment, the app can remotely lock the handsetThe phone remains unusable until the pending emi is clearedThis acts as a security mechanism for lenders to ensure timely payments.⏳ 2. Importance of timely emi paymentPaying emis on time is more important than ever:Avoid your phone being rendered unusablePrevent penalty charges and late feesMaintain a good credit score for future loans and credit cards📲 3. Tips to avoid phone lockingSet up auto-debit from your bank account to ensure emis are paid on timeKeep track of due dates in your phone calendarNotify the lender immediately in case of payment issuesRead the loan agreement carefully to understand the lender’s terms💡 4. Why lenders are doing thisSecures the investment in expensive smartphonesReduces risk of defaultEncourages borrowers to prioritize emis over other expensesFor consumers, it’s a reminder that borrowed money comes with responsibilities.✅ 5. Key takeawayPhones on loan are a great convenience, but borrowers must pay emis on time to avoid getting locked out of their device. With apps monitoring payments and rbi regulations supporting lenders, staying organized with your emis is now more crucial than ever.
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.