Most lenders and loan agents are honest. But loan fraud — fake apps, "pre-approved" offers that demand a fee, threatening recovery calls — targets people at the moment they most need money. A few simple checks will keep you safe.
Red flags
- Any upfront fee. "Processing", "file charge", "insurance" or "GST" demanded before the loan is disbursed, especially to a personal UPI ID or bank account. Genuine lenders deduct fees from the disbursed amount and disclose them in writing.
- Guaranteed approval regardless of your credit history.
- No lender name, or a lender you cannot find on the RBI website.
- Excessive app permissions — access to your contacts, photos or call logs.
- Pressure tactics: "offer expires in 10 minutes", threats, or abusive calls.
- Requests for OTPs, UPI PINs or passwords. No genuine lender or DSA will ever ask.
The RBI rules that protect you
Under RBI's digital lending rules, regulated lenders must:
- Disburse loans directly into your bank account and receive repayments directly — not through a third party's account.
- Give you a Key Fact Statement (KFS) with the APR and all charges before you sign.
- Offer a cooling-off period during which you can exit a digital loan by repaying the principal and proportionate interest, without penalty.
- Collect only the data needed, with your explicit consent — and not access your contacts or media.
- Name a grievance redressal officer, and let you escalate to the RBI Integrated Ombudsman if unresolved in 30 days.
RBI also publishes a directory of digital lending apps deployed by the banks and NBFCs it regulates on its website — check an app there before you download it.
How to verify a lender or agent
- Find the lender's name in the loan offer and confirm it is a bank or an NBFC registered with the RBI (rbi.org.in).
- Download apps only from official app stores, and check the developer name matches the lender.
- If an agent (DSA) contacts you, ask which lender they represent and confirm with that lender.
Where to report
- Cyber fraud: call 1930 or file at cybercrime.gov.in
- Unauthorised lending entities: the RBI's Sachet portal (sachet.rbi.org.in)
- Complaints against a regulated lender: cms.rbi.org.in
Kredistar never charges borrowers and never asks for OTPs, PINs or payments to personal accounts. If someone claims to represent us and does, report it to contact@kredistar.in.
This article is for general information only and is not financial, legal or tax advice. Loan terms are set by the lender. Kredistar Finserv Pvt. Ltd. is a DSA and loan aggregator, not a lender.