1. The app may only be the front end

A digital lending app can belong to a regulated entity or be a service provider working for one. The legal lender should be clearly identifiable in the offer and loan documents.

Tip: Always identify the bank or NBFC on the contract.

2. Cost should be disclosed before acceptance

RBI digital-lending rules require important disclosures for covered products, including the KFS and APR. You should receive the loan documents digitally and understand the repayment schedule before accepting.

Tip: Do not accept if the all-in cost is unclear.

3. Money should flow through authorised channels

Digital-lending rules generally require disbursal and repayment to follow prescribed flows involving the regulated entity, subject to specified exceptions. A request to pay an agent's personal account is a serious warning sign.

Note: Use only authorised repayment channels.

4. Data permissions should be proportionate

Review privacy disclosures and app permissions. Fast credit does not justify unnecessary access to contacts, photos or unrelated device data.

Note: Do not trade excessive phone access for faster credit.

5. Quick check

An app asks you to repay to an agent's personal UPI. What should you do?