Economics · Banking Regulations

Consider the following statements regarding the Reserve Bank of India's (RBI) regulatory framework for microfinance loans: I. Under the guidelines, every Regulated Entity (RE) must provide a 'Fact Sheet' to the borrower which must include the annualized percentage rate, the total interest charge, and all other fees including processing fees and insurance premiums. II. A microfinance loan is defined as a collateral-free loan provided to a household having an annual income of up to three lakh rupees across all areas (rural, semi-urban, and urban). III. Regulated Entities are prohibited from charging any pre-payment penalty on microfinance loans, and any change in interest rate or charges shall be prospective. IV. The assessment of household income is a mandatory requirement, and REs must have a Board-approved policy for the same. Which of the statements given above are correct?