How to check a lender or loan app before you borrow

Short answer: Loans from banks and registered NBFCs come from lenders that RBI regulates (controls with rules). That is true even when you apply through an app, and most loan apps work for a bank or NBFC. Before you borrow, do four things. Find the lender’s legal name. Check it on RBI’s lists. Check that the app is on RBI’s list of digital lending apps. And make sure you get a Key Facts Statement. If an app hides who the lender is, asks for fees upfront, or wants your contacts and photos, don’t use it.
App name ≠ lender
Many loan apps aren’t lenders at all. They are lending service providers (LSPs): companies that find customers and run the app for a bank or NBFC (a non-bank finance company registered with RBI). That’s allowed. But RBI’s Digital Lending Directions (2025) say the app must clearly show which regulated lender gives the loan. Your KFS and loan agreement must name that lender too.
The 5-step check
1. Find the lender’s legal name. Look at the app’s “About” or “Our lending partners” page, the KFS and the sanction letter (the letter that confirms your loan). You want something like “XYZ Finance Private Limited”, not just the app’s brand name.
2. Check the lender is registered. Banks are listed on the RBI website. For NBFCs, RBI publishes a list of registered companies and a list of those whose registration was cancelled: https://www.rbi.org.in/Scripts/BS_NBFCList.aspx. Search the Excel or PDF file for the exact legal name.
3. Check the app is on RBI’s list of digital lending apps. RBI publishes the apps that regulated lenders say they use. Go to rbi.org.in → Citizen’s Corner → “DLAs deployed by Regulated Entities” and search for the app name. RBI builds this list from what lenders report, and it says it does not check the list itself. So an app on the list is linked to a regulated lender, but that doesn’t make the loan cheap or right for you. An app missing from the list is a serious warning sign.
4. Ask for the KFS before you accept. The KFS (Key Facts Statement) is a short sheet that must show the lender’s name, the APR, all fees and the total you repay. APR means the full yearly cost, with interest and fees together. Digital loans also have a cooling-off period of at least 1 day. During that time you can leave the loan with no penalty. You repay the amount you borrowed plus the cost (APR) for the days you had it. The lender may also keep a small one-time processing fee, but only if the KFS says so.
5. Check where the money goes. Under RBI rules, the loan should go from the lender straight to your bank account. Your repayments should go straight to the lender, not to someone else’s personal account.
Red flags: walk away if you see these
- A fee before the loan is paid out (“processing”, “insurance” or “GST” to release the loan)
- The app asks for your contacts, photos or files. A real app may need one-time camera or location access for KYC (checking who you are), with your consent. It does not need your whole phone.
- No lender name, or a lender you can’t find on RBI’s lists
- No KFS, or charges in the app that aren’t in the KFS
- A request to pay into a personal UPI ID or one person’s bank account
- Threats, or messages to your contacts when you’re late
- Promises like “no documents, no CIBIL check, instant ₹5 lakh”. (CIBIL is a credit bureau, a company that keeps records of your past loans.)
If you’ve already used a suspicious app
- Don’t pay “extra fees” to unlock or close the loan.
- Keep proof: screenshots, messages, payment receipts, and the app’s name and website.
- If you face fraud, threats or harassment, call 1930 or file at https://cybercrime.gov.in. You can also report companies working without permission on RBI’s Sachet portal: https://sachet.rbi.org.in
- Turn off the app’s permissions in your phone settings, then uninstall it.
- If the lender is regulated, complain to its grievance officer (the person who handles complaints). After 30 days you can go to the RBI Ombudsman (https://cms.rbi.org.in, 14448). The Ombudsman is the RBI office that handles complaints against banks and other lenders.
- Tell someone you trust. Harassers count on you feeling alone and ashamed. Asking for help is not wrong.
What to check today
- For every loan app on your phone, find the lender’s legal name.
- Check that each lender is on RBI’s NBFC list (or is a bank) and that the app is on the DLA list.
- Remove permissions or apps you no longer use.
Sources and review
- RBI — Digital Lending Directions, 2025 (8 May 2025): https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12848
- RBI — press release on the Digital Lending Directions and the public list of Digital Lending Apps (8 May 2025): https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60403
- RBI — list of registered/cancelled NBFCs: https://www.rbi.org.in/Scripts/BS_NBFCList.aspx
- RBI — since 28 Nov 2025 the digital lending rules sit in the Credit Facilities Directions, 2025 (NBFC version): https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12957
- RBI Sachet portal: https://sachet.rbi.org.in
- National Cyber Crime Reporting Portal: https://cybercrime.gov.in
Educational information, not financial advice. Found an error? Tell us → · Corrections log