Safety

Borrow safely. Spot scams. Know your helplines.

Predatory loan apps and fake recovery agents are the #1 risk for first-time borrowers in India. This page lists what to look for, how to verify a lender, and where to go for help.

Red flags of an unsafe loan app

Asks for contacts, gallery, or SMS permissions

Legitimate lenders do not need your phonebook or photos. These permissions are used for harassment later.

Demands an upfront 'processing fee' before disbursal

Real lenders deduct fees from the disbursed amount — they never ask you to pay first via UPI or to a personal account.

Very high APR, or short tenure with steep interest

RBI no longer caps NBFC interest rates, so a high APR is not automatically illegal. But rates well above ~36% deserve extra scrutiny — compare the APR and total cost, and be wary if the lender will not show them clearly.

Will not share a Key Fact Statement (KFS)

RBI made the KFS mandatory in October 2024. No KFS, no loan.

Hides the regulated lender's name inside the app

Every legal digital lender app must clearly name the bank or NBFC behind it.

Threatens you, calls family, or shares your data

Harassment by recovery agents is illegal under RBI's Fair Practices Code. Save evidence and report it.

Always ask for the Key Fact Statement

Before you sign a loan, ask the lender for the KFS. It is a one-page summary showing the total amount you will repay, the APR, every fee, the EMI, and what happens if you miss a payment. From October 2024 every regulated lender must give this for new retail and small-business loans (credit cards instead give an MITC). If they refuse, walk away.

How to verify a lender

Open sachet.rbi.org.in and search the lender's exact name. You can also check RBI's published list of regulated entities. Inside any legitimate loan app, the regulated bank or NBFC name must be clearly displayed. If you cannot find this information, do not borrow.

Helplines you can save right now

Cyber crime and financial fraud

Call 1930 or report at cybercrime.gov.in. Use this if money was taken or you were tricked into transferring funds.

cybercrime.gov.in

RBI complaint portal (Sachet)

File a complaint about an unauthorized lender or harassment.

sachet.rbi.org.in

RBI Ombudsman

Use this when a regulated bank or NBFC has not resolved your written complaint within 30 days.

cms.rbi.org.in

iCall mental health helpline

Free, confidential support if loan harassment is affecting your mental health. 9152987821, Monday to Saturday, 8 am to 10 pm.

+919152987821

Vandrevala Foundation

24x7 mental health helpline: 1860-2662-345 (alternate: 1800-2333-330). Call or WhatsApp from anywhere in India.

18602662345

If a loan app is harassing you

Stop paying via UPI links the agent sends you. Pay only on the official lender app or website.
Take screenshots of every message, call log, and shared post. This is your evidence.
Report to 1930 or cybercrime.gov.in immediately. File a separate complaint at sachet.rbi.org.in.
Tell one family member or friend so you are not facing this alone. Reach iCall at 9152987821 if you need to talk.
You do not legally have to pay illegal interest, late fees, or charges that were not in the KFS. Document and dispute.

Next: understand credit basics