Frequently asked questions
Answers to help you borrow safely from loan apps and digital lenders in India.
How do I check if a loan app is genuine?
Every legitimate digital loan must ultimately come from a bank or an NBFC regulated by the Reserve Bank of India, even when you apply through an app. Ask the app which regulated entity is actually lending to you and confirm that name against the list on the RBI website. If the app will not name a regulated lender, treat that as a warning sign.
What is a Key Fact Statement in digital lending?
A Key Fact Statement is a standard document a lender must give you before you sign, setting out the full cost of the loan in one place. It covers the interest, all fees and charges and the effective annual cost, so you can compare offers honestly. Read it fully, because the headline rate alone rarely reflects what the loan truly costs.
What are the warning signs of a fake or unsafe loan app?
Be cautious if an app demands access to your contacts, photos or gallery, since a genuine lender does not need them to assess a loan. Other red flags include upfront processing fees before any money reaches you, pressure to borrow quickly, and threats or harassment during recovery. Loan money should be paid into your own bank account, and repayments should go directly to the lender.
What is the cooling-off period on a digital loan?
Under RBI digital lending norms, borrowers get a cooling-off period during which they can exit a loan by repaying the principal and the proportionate cost, without a penalty. It gives you a short window to change your mind after signing. The exact length is set out in your loan terms, so check it when you borrow.
What can I do if a recovery agent harasses me?
Regulated lenders must provide a grievance officer whose contact details should be shared with you, and that is the first place to raise a complaint. Keep records of calls and messages, and remember that abusive or threatening recovery behaviour is not permitted. If the lender does not resolve it, the matter can be escalated to the RBI grievance mechanism.