7 signs of a fake loan app, and how to protect yourself

Illegal loan apps thrive on urgency. They promise instant money, then trap borrowers with hidden fees and harassment. RBI and the government have removed thousands of such apps, but new ones keep appearing. Here's how to tell.

Red flags

• They ask for an upfront 'processing' or 'file' fee before disbursal.
• There's no named RBI-registered lender in the app or agreement.
• They demand access to your contacts, gallery or call logs.
• No Key Fact Statement or APR is shown before you accept.
• Payment is requested to a personal UPI ID or bank account.
• Recovery agents threaten you or message your contacts.
• The app is not on official app stores, or is shared via WhatsApp links.

How to verify a lender

Every legitimate digital loan names an RBI-registered bank or NBFC. Search that name on the RBI website, and check that the app appears in the lender's list of Digital Lending Apps on its own website.

Where to report

Call the national cyber crime helpline 1930, file a complaint at cybercrime.gov.in, and report unauthorised lenders on RBI's Sachet portal (sachet.rbi.org.in).