India
Loan Apps in India: RBI Digital Lending Rules and How to Spot Illegal Apps
The RBI tightened digital lending in 2022. The rules give you specific rights and specific tells.
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- Licence check
- RBI-registered NBFC or bank on the app
- Key right
- Direct disbursal to your bank account
- Key right 2
- No access to contacts without consent
- Complaint route
- RBI Ombudsman
Disbursal must be direct
Money must go from the lender to your account, never through the app own wallet. A pass-through wallet is the most common illegal structure.
The lender must be named
The app must display the RBI-registered entity. If only a brand name appears, there is no lender behind it.
Fees must be disclosed upfront
All charges including processing and the cooling-off terms must be in the Key Fact Statement before you sign.
You have a cooling-off period
Borrowers may exit within a defined window by repaying principal without penalty.
VerdictDirect disbursal, a named registered lender, and a Key Fact Statement. Any app missing one is the one to skip.
FAQ
How do I check an app is legal?▾
Look for the named RBI-registered lender and direct disbursal.
Can an app read my contacts?▾
Only with consent, and it must be disclosed.
Where do I complain?▾
RBI Ombudsman.
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