Digital loan journeys can make it easy to reach an offer, but an app name or logo alone does not establish who is lending. Before sharing personal information or accepting a loan, identify the bank or NBFC that will actually make the loan and verify the relationship using that lender's official website and contact channels.
Verify who the lender is
Look for the lender's full legal name, registered contact details, grievance officer and privacy policy. Cross-check the app or lending service through the lender's official partner information and the RBI's public directory of digital lending apps, where applicable. If the app claims a partnership that the lender does not confirm, stop and contact the lender directly. Do not rely on a search advertisement, caller ID or forwarded link as proof.
Read the Key Facts Statement before accepting
For covered retail and MSME term loans, RBI requires a Key Facts Statement (KFS) before contract execution. It sets out key loan information, including the Annual Percentage Rate (APR), repayment schedule and charges. Compare the amount credited to you with the total amount you must repay. Check processing fees, third-party charges, taxes, due dates, late-payment terms and any optional service. Ask for an explanation of any charge that is absent from or unclear in the KFS.
Check the payment and data route
For digital lending covered by RBI's rules, disbursal and repayment generally flow directly between the borrower and the regulated entity, subject to specified exceptions. A demand to send money to an individual's personal UPI ID to release a loan is a warning sign. Review what data the app requests and whether the permission is necessary. Never share an OTP, password, card PIN or remote-access code with a caller.
Pause if anything does not match
- Verify the lender independently, not through a link supplied by an unknown agent.
- Keep a copy of the KFS, sanction communication and loan agreement.
- Confirm the name of the account receiving repayments.
- Use the lender's grievance channel if an amount or contact differs.
Sources: RBI, Key Facts Statement (KFS) for Loans and Advances, 15 April 2024; RBI, Guidelines on Digital Lending, 2 September 2022. These rules have scope and exceptions; check the latest RBI directions and the regulated lender's disclosures. General education only.