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With the rise of quick loan apps in India, borrowing has become easier — but also riskier.
Many users fall prey to unregulated apps with:
Hidden charges
Harassment calls
Data misuse
Unfair recovery practices
To protect you, the Reserve Bank of India (RBI) issued strict guidelines for digital lenders and loan apps.
Here’s what you must know before downloading or using any loan app.
🛡️ Key RBI Guidelines on Digital Loan Apps (as of 2022–2024)
✅ 1. Loan Must Be Given by a RBI-Registered Entity
The loan provider must be:
A Bank
NBFC
RBI-regulated Digital Lending Platform
🔍 Always check the lender’s RBI registration number.
✅ 2. Loan Agreement Must Be Shared with You
You must receive:
📝 A sanction letter
📩 A loan agreement copy in your email or app dashboard
No hidden terms allowed.
✅ 3. Clear Disclosure of Charges
App must clearly display:
Interest rate
Processing fee
Late payment charges
Foreclosure penalties
🧠 If charges are not shown upfront, avoid the app.
✅ 4. No Automatic Credit Without Consent
Apps cannot deposit loans in your account without your explicit consent.
🚫 Forced credit is illegal.
✅ 5. Repayment Must Go Only to Registered Bank Accounts
Borrower’s repayments should go to a bank account in the name of the regulated lender or their partner NBFC.
✅ 6. Personal Data Protection
Apps must:
Take explicit consent to access contacts, gallery, or SMS
Inform how your data will be used
Restrict access only to necessary information
🔐 Harassment by misusing contact list is now legally punishable.
✅ 7. Recovery Agents Must Follow Guidelines
Recovery calls can only happen:
At designated hours (not late night)
Through trained, verified personnel
Without threats or abuse
📞 You can complain to the lender and RBI if harassed.
🚨 Red Flags of Fake Loan Apps
Avoid apps that:
🚫 Ask for upfront payment or registration fees
🚫 Do not disclose the lender’s name
🚫 Send aggressive WhatsApp/SMS spam
🚫 Have no website, customer care, or RBI registration
🚫 Harass borrowers via contact list leaks
📲 How Vizzve Finance Ensures Safe Digital Lending
At Vizzve, all partners are RBI-compliant and offer:
📜 Transparent loan terms
🧾 Legal documentation & receipts
🧑💻 Secure app usage with minimal data access
📲 Smart dashboard for real-time tracking
🤝 Friendly support — not harassment
🔖 Summary Table: RBI-Compliant Loan Apps vs Fake Apps
| Feature | RBI-Compliant App | Fake Loan App |
|---|---|---|
| RBI Registration | ✅ Yes | ❌ No |
| Loan Agreement Shared | ✅ Yes | ❌ No |
| Charges Disclosed Upfront | ✅ Yes | ❌ Hidden |
| Personal Data Misuse | ❌ No | ✅ Yes |
| Recovery Guidelines Followed | ✅ Yes | ❌ Threats, Harassment |
| Secure Payment Channels | ✅ Bank Account Only | ❌ UPI to Random Names |
💬 FAQs
1. Can digital loans affect my CIBIL score?
Yes. Late EMIs or default from RBI-regulated apps are reported to bureaus.
2. Where can I report fake loan apps?
You can report to:
RBI’s Sachet Portal
Your local cybercrime police station
Google Play Store or App Store
3. Is it safe to take a loan from Vizzve?
Absolutely. Vizzve partners only with RBI-regulated lenders and follows all RBI digital lending norms.
Published on : 17th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.