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How to check a lender or loan app before you borrow

6 min read
Hand holding a phone, checking an app

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

  1. Don’t pay “extra fees” to unlock or close the loan.
  2. Keep proof: screenshots, messages, payment receipts, and the app’s name and website.
  3. 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
  4. Turn off the app’s permissions in your phone settings, then uninstall it.
  5. 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.
  6. Tell someone you trust. Harassers count on you feeling alone and ashamed. Asking for help is not wrong.

What to check today

  1. For every loan app on your phone, find the lender’s legal name.
  2. Check that each lender is on RBI’s NBFC list (or is a bank) and that the app is on the DLA list.
  3. Remove permissions or apps you no longer use.

Sources and review

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Educational information, not financial advice. Found an error? Tell us → · Corrections log

Frequently asked questions

How do I know if a loan app is linked to an RBI-registered lender?

Check two lists on rbi.org.in. First, find the lender's legal name in the app or the KFS and search RBI's list of registered NBFCs (banks are listed separately). Then look for the app on RBI's list of digital lending apps (DLAs). RBI builds that list from what lenders report and doesn't check it itself. An app missing from it is a serious warning sign.

Can a loan app access my contacts and photos?

A real loan app does not need your contacts, photos or files. It may need one-time camera or location access for KYC (checking who you are), and only with your consent. If an app wants your whole phone, don't use it. If one already has these permissions, turn them off in your phone settings and uninstall it.

A loan app wants a fee before it pays out the loan. Is that a scam?

Treat it as a red flag and walk away. Asking for "processing", "insurance" or "GST" money to release a loan is one of the clearest warning signs. The loan should go from the lender straight to your bank account. If you have already paid, don't pay any more. Keep screenshots and receipts, then call 1930 or file at cybercrime.gov.in.

What is the cooling-off period for a digital loan?

For digital loans it is 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. Read that part of the KFS before you accept.

The app name is different from the lender's name. Is that normal?

Yes, it can be. Many apps are lending service providers (LSPs): companies that run the app for a bank or NBFC. 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. If you can't find a lender name anywhere, don't borrow.

Where can I report a fake loan app or harassment?

For fraud, threats or harassment, call 1930 or file at cybercrime.gov.in. To report a company working without permission, use RBI's Sachet portal (sachet.rbi.org.in). If the lender is regulated, complain to its grievance officer first. After 30 days you can go to the RBI Ombudsman at cms.rbi.org.in or call 14448. Read Loan app harassment for next steps.