Avoiding fraudulent loan apps: RBI listing, ratings & reviews key to safety

Loans from registered NBFCs or banks come with a key fact statement (KFS), a sanction letter, and a loan agreement detailing all costs

The Reserve Bank of India (RBI) has published a list of authorised digital lending apps (DLAs) on its website. This will enable borrowers to verify whether an app has partnered with an RBI-registered non-banking financial company (NBFC) or bank, and help them avoid unauthorised platforms.

 

“A loan from such a DLA comes with the standards and safeguards outlined in the Digital Lending Directions and other relevant regulations, such as the Fair Practice Code,” says Sugandh Saxena, chief executive officer (CEO), Fintech Association for Consumer Empowerment (FACE). 

Risks of using unregulated apps 

Unauthorised DLAs lack transparency in their operations. “Borrowers may