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Beginner9 min read

How to Check Whether a Lender Is Legitimate

Use a practical verification checklist before sharing documents, paying fees or accepting loan money.

Reviewed and updated 30 Aug 2026GainFair Editorial TeamSources and editorial policy

1. Identify the legal lender

Look for the exact bank or NBFC on the loan agreement, not only a marketing brand, app name or agent.

Tip: If the legal lender is unclear, pause.

2. Cross-check official sources

Use RBI regulated-entity information and the lender's official website to verify the institution and, where relevant, its relationship with a digital app or service provider.

Tip: Verify from the source, not an agent's screenshot.

3. Read the KFS, APR and grievance details

For applicable products, legitimate lenders provide key cost, repayment and grievance information. Pressure to accept without documents is a reason to stop.

Note: Do not sign or tap “accept” before reading the core disclosures.

4. Watch common scam payment patterns

Red flags include personal-account “security fees”, requests for UPI PIN or banking OTP, fake refund charges, threats and excessive phone permissions.

Note: No legitimate lender needs your UPI PIN or banking OTP.

5. Quick check

An app displays an NBFC logo. What is stronger verification?