How to Spot an Illegal Loan App in 60 Seconds

Illegal loan apps lure borrowers with instant approval and no paperwork, then trap them with hidden fees and harassment. Before you install any loan app, run these checks.

The 60-second checklist - Does the app name its lending partner (a bank or RBI-registered NBFC)? RBI's Digital Lending Directions require it. - Is the partner NBFC listed on the RBI website? - Does the app show a Key Fact Statement (KFS) with the all-in APR before you accept? - Does it ask for access to your contacts, photos or call logs? Legitimate lenders don't need them. - Is there a named grievance redressal officer with an email and phone number? - Is the loan disbursed directly to your bank account, with no upfront fee? - Are the reviews full of complaints about harassment or deductions?

If you've already borrowed Don't panic, and don't take another loan to repay the first. Save all screenshots, uninstall the app, revoke its permissions, and file a CreditSafe report — an advisor will guide you.