Short answer: Being on the Play Store does not mean an app is allowed to lend. Only banks and RBI-registered NBFCs (and other regulated entities) can lend, and their apps must follow the RBI’s Digital Lending Directions, 2025. Before borrowing, check that the app appears in the RBI’s public list of digital lending apps and that the lender named in the loan agreement is RBI-regulated.
Last updated: 13 October 2026.
When we first published this guide in January 2023, borrowers had few easy ways to verify an app. That has changed. Since July 2025, the RBI publishes a directory of digital lending apps (DLAs) linked to regulated lenders. This rewrite explains how to use it and what the 2025 rules mean for you.
Who is actually allowed to lend
In India, lending as a business needs a licence or registration from a regulator. For most consumer loans that means one of the following:
- Banks, including small finance banks.
- Non-banking financial companies (NBFCs) registered with the RBI.
- Other RBI-regulated entities such as cooperative banks.
Many loan apps are not lenders themselves. They are lending service providers (LSPs) that source customers for a bank or NBFC. That is allowed, but the actual lender must be a regulated entity and must be named clearly to you. An app that lends its own money without any registration is operating outside the rules.
A quick way to tell the difference: your sanction letter and loan agreement must carry the lender’s legal name, such as “XYZ Finance Private Limited”, not just the app’s brand name. If the documents only mention the app, or you never receive documents at all, treat that as a red flag. You should also get an SMS or email from the lender itself when the loan is disbursed. For background on why the regulated route matters, read why take loans only from RBI-registered NBFCs and banks.
Why a Play Store listing is not enough
- App stores review apps for their own policies. They are not financial regulators and cannot give RBI approval.
- Illegal apps have repeatedly appeared, been removed, and reappeared under new names.
- An app may display a real NBFC’s name without any actual tie-up.
- Reviews and download counts can be manipulated.
If an app you used has disappeared from the store, read loan app removed from Play Store: what now.
What the RBI’s Digital Lending Directions, 2025 require
On 8 May 2025, the RBI issued the Reserve Bank of India (Digital Lending) Directions, 2025, consolidating its earlier digital lending rules. Key protections for you:
| Protection | What it means for you |
|---|---|
| Direct disbursal and repayment | Loan money goes straight from the lender to your bank account, and repayments go to the lender, not through a third party’s pooled account. |
| Key Fact Statement (KFS) | Before you sign, you get a KFS showing the annual percentage rate (APR), all fees and the repayment schedule. Charges not in the KFS cannot be collected. |
| Cooling-off period | You can exit the loan within the cooling-off period by repaying principal and the proportionate APR, without a penalty. |
| No automatic credit limit increase | Your limit cannot be raised without your explicit consent. |
| Data limits | Apps may access only data needed for the loan, with your consent. Access to contacts, photos and files is restricted. |
| Named lender and LSP | The app must show which regulated entity is lending and which LSPs are involved. |
| Grievance officer | Every lender and LSP must publish a grievance officer’s contact details. |
| Multi-lender display | If an app shows offers from several lenders, it must show them neutrally, with the lender name and terms, so you can compare. |
Our page on APR vs interest rate and the KFS shows how to read the numbers. The RBI rules for borrowers hub covers the wider framework.
How to check a loan app in five minutes
- Find the lender’s name. Look in the app’s “About” section, website and loan agreement. If no bank or NBFC is named, stop.
- Check the RBI’s DLA list. On the RBI website, the Citizen’s Corner has a list titled “DLAs deployed by Regulated Entities”. Search for the app name. Our RBI digital lending app list page explains how to use it.
- Check the NBFC’s registration. Confirm the NBFC holds a valid certificate of registration. Use our RBI-registered NBFC search.
- Read the KFS before accepting. Compare the APR, processing fee and total repayable amount.
- Review permissions. Deny access to contacts, photos and media. A legitimate lender does not need them.
The RBI notes that its DLA list reflects what regulated entities report, without separate validation. So treat it as a strong first filter, then confirm the lender name in your documents. A step-by-step version is in how to check if a loan app is RBI-approved.
Warning signs of an illegal loan app
- No lender name, or a lender name you cannot find in RBI records.
- An “upfront fee” or “insurance charge” before disbursement.
- Money credited that is much less than the loan amount, with no clear fee breakdown.
- Very short tenure, such as 7 days, with very high fees.
- Requests for contacts, gallery or SMS access.
- Loan offered through WhatsApp, SMS links or APK files outside app stores.
Read more in how to identify a fraudulent online lending platform.
A simple cost example
Consider a ₹10,000 loan for 30 days. A regulated lender’s KFS might show a processing fee of ₹500 and interest of ₹250, so you repay ₹10,250 and receive ₹9,500 up front. The APR on that is very high, which is why short loans should be used rarely. An unregistered app might credit only ₹7,000, demand ₹10,000 back in 7 days, and add late fees. The first case is expensive but transparent and governed by rules. The second is not.
If you already have several app loans, see multiple loan apps: how to get out.
If something goes wrong
First complain to the lender’s grievance officer. If the lender is regulated and does not resolve it within 30 days, or you are unhappy with the reply, you can complain to the RBI Ombudsman through the RBI’s complaint management system. If an entity is not regulated at all, you can report it on the Sachet portal. For threats or fraud, report on the national cybercrime helpline, 1930.
Compare personal loan offers from RBI-regulated banks and NBFCs, with the lender named upfront.
FundsTiger works only with RBI-regulated lenders and shows you which lender is making each offer. Whichever route you choose, borrow only what you can repay, and check your EMI with the personal loan EMI calculator first.
Frequently asked questions
Is every loan app on Google Play approved by the RBI?
No. The RBI does not approve app store listings. Check whether the app is in the RBI’s list of DLAs deployed by regulated entities and whether the named lender is a bank or registered NBFC.
Where is the RBI’s list of loan apps?
On the RBI website under Citizen’s Corner, titled DLAs deployed by Regulated Entities. It has been published since July 2025 and updates as lenders report their apps.
Can a loan app access my contacts?
Under the RBI’s digital lending rules, apps should collect only data needed for the loan, with consent. Deny contact, photo and file permissions.
Can I cancel a digital loan after taking it?
Yes, within the cooling-off period stated in your KFS. You repay the principal and proportionate APR without a prepayment penalty.
What if the app is not regulated?
Do not borrow from it. If you already have, keep records, report it on Sachet and, for threats or fraud, on the cybercrime helpline 1930.
Sources
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.