Your account can become empty due to greed for loan in 5 minutes! This is the easiest way to identify these fake loan apps.

Nowadays, the lure of getting a loan in one click on mobile is visible everywhere. ‘₹10,000 loan in 5 minutes, without documents, without credit check!’ Like many people immediately download the app after seeing the ads. But these fake Chinese loan apps set a trap to drain your bank account. Once the data is in their hands, these apps cheat you by stealing your contacts, messages and bank details.

Sometimes after giving a small loan, they charge huge interest later or cause trouble. Despite RBI’s warning, these apps are coming in the market with new names every day.

How do fake apps work?

These are mostly Chinese companies which make fake apps in India. As soon as you download the app, it asks you for many unnecessary permissions, like contact list, gallery, location, SMS and camera.

As soon as the loan is approved, they deposit a small amount, but later start recovering by adding hidden charges and huge interest. Many times they deduct money from your bank account without giving loan or defame your friends and relatives by sending messages.

The easiest way to identify these fake apps in 1 minute

• Download only from official store: Get the app from Google Play Store or Apple App Store only. Never download from external links or SMS.
• Check RBI Directory: RBI has started Digital Lending Apps (DLA) Directory from July 2025. Go to RBI website and check whether the app is listed there or not. If it is not there then it is fake.
• Must be an RBI registered bank/NBFC partner: It is clearly written in the original app with which bank or NBFC it is working. This information is hidden or incorrect in fake apps.
• View Permissions and KYC: If the app is asking for full access to gallery, contacts or SMS then uninstall it immediately. Genuine apps ask only for necessary KYC (PAN, Aadhaar).
• Read interest and terms first: The entire loan agreement should be seen before taking the loan. Hidden charges or promise of very low interest are signs of a fraud.
• Check Reviews and Website: Avoid apps with low reviews or only 5-star reviews. The full address and customer care number should be available on the website of the genuine company.

How to take a secured loan by following RBI guidelines?

According to RBI Digital Lending Rules 2025:

• The loan will come directly into your bank account.
• Interest, fees and EMI should be clearly mentioned.
• No third party can be involved in recovery.
• It is necessary to have a grievance redressal system for complaints.

Safe option: Always use apps of big banks or RBI-registered NBFCs (like Bajaj Finserv, Moneyview, Fibe etc.). If needed, go to the bank branch and take a loan.

5 minutes of haste due to greed for loan can spoil your entire year. Making a small check will save both your account and reputation. Always remember – ‘Whatever seems very easy may turn out to be a trap!’ Check RBI website today and stay safe.