Instant loan apps: how to tell a lender from a trap

An "instant loan in five minutes" can come from a regulated lender, or from an illegal app that takes contact and photo access, deducts big fees upfront and then threatens the borrower's family.

Four checks

1. Is the lender authorised? Check the bank or NBFC name in the lists on the RBI website and the Sachet portal. A genuine digital lending app should disclose its lending partner.
2. Read the key fact statement. A regulated lender must show the total cost, including the annual percentage rate, fees and tenure, before you accept.
3. Watch app permissions. A loan app does not need your contacts list, gallery or microphone.
4. Check where the money flows. Loans are disbursed to your bank account and repaid to the lender's account, not to personal UPI IDs.

If you are being harassed

• Do not pay extra under threat. Save the messages, numbers and screenshots.
• Report on cybercrime.gov.in and call 1930.
• Lodge a complaint with RBI's complaint system if the lender is regulated.

Borrowing is not shameful, but threats and public shaming are illegal.