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Clear information about loan pricing, credit history, documentation, data safety and official regulatory resources—designed to help borrowers make informed financial decisions.
Understand loan pricing, credit information, document safety, responsible borrowing and important regulatory developments before making a financial decision.
Before accepting any loan, a borrower should be able to understand:
A CIBIL Score is a numerical summary of credit history. A lower score can affect how lenders assess an application, but a score by itself does not represent a person's complete financial circumstances.
Loan decisions may consider multiple factors such as income, employment, existing obligations, repayment history, bank-account information and the lender's applicable credit policy. Different lenders may have different eligibility criteria. Approval is never guaranteed.
Learn more from the credit bureau: TransUnion CIBIL · Credit score & loan basics
A credit score reflects information in a credit report. It does not by itself describe a person's character, intelligence, honesty, or financial potential.
Borrowers should avoid shame or stigma associated with a lower credit score and instead focus on understanding their credit report, repayment obligations and available financial options.
Credit bureaus such as TransUnion CIBIL describe several factors that can influence a score. No single factor explains a score on its own.
Applicable rate and charges are disclosed in the relevant loan documents. Look for each of these before you accept:
Monthly rate: the percentage charged each month. 1% a month is roughly 12% a year.
Annualised rate: the same rate expressed over a year, which makes loans easier to compare.
APR: where applicable, the all-inclusive annualised cost of a loan, including charges and not only the interest rate.
Flat rate: interest is calculated on the original loan amount for the whole tenure, even as you repay.
Reducing balance: interest is calculated on the amount still outstanding, so it falls as you repay.
Total repayment: principal plus interest plus applicable charges. This is the number to compare.
Suppose a hypothetical ₹10,000 loan is repaid over 12 months, excluding fees and taxes:
Same headline number, very different cost. Always compare the total repayment and, where provided, the APR.
A Key Fact Statement (KFS) summarises the key terms of a loan in a standard, easy-to-read format. It typically covers:
Where KFS requirements apply to the relevant regulated lending arrangement, the borrower should review the KFS before accepting the loan contract. RBI's Digital Lending Directions, 2025 describe KFS requirements for digital lending by regulated entities. Read the official RBI source →
Financial applications may require documents depending on the product and applicable KYC and credit-assessment requirements. These can include:
Documents should be collected only for legitimate and disclosed purposes and handled according to the applicable privacy, security and data-handling requirements.
Customers should share documents only through official channels and should verify the identity of the organisation requesting them.
Customers should be able to understand the contractual terms applicable to their financial arrangement before accepting them. The stages below are general; the exact documents depend on the product.
These are general principles of responsible lending that borrowers can expect and ask about from any lender.
Summaries below are for general awareness and were checked on 1 October 2026. Always read the official source for the full and current text.
RBI consolidated its digital lending instructions into one set of Directions (RBI/2025-26/36). They cover disclosure of the APR and a Key Fact Statement before the loan contract, a cooling-off period to exit a digital loan, and direct flow of disbursal and repayment between the borrower and the regulated lender.
Read Official RBI Source →RBI circular RBI/2023-24/53 says a penalty for breaching material loan terms should be a "penal charge" rather than extra "penal interest" added to the rate, with no further interest on such charges. The amount and reason are to be disclosed in the loan agreement and KFS where applicable. Implementation dates were later set from 1 April 2024.
Read Official RBI Source →Search the circular number under Notifications on rbi.org.in.Official RBI public-awareness resources can help consumers understand digital payments, financial fraud prevention, safe borrowing and responsible financial behaviour.
This is an IndiFunds page. It is not an RBI page and is not affiliated with or endorsed by RBI.
Different lenders can have different credit policies. Assessment may consider:
Only items from RBI's own publications are listed. Bank and NBFC company news is not reproduced here.
RBI publishes registration-related announcements for NBFCs in its press-release section. Borrowers can use RBI's official publications to check an NBFC's current registration status.
Read Official RBI Source →RBI's public FAQ explains what NBFCs are and notes that interest rates charged by NBFCs are not subject to a ceiling; the rate is governed by the loan agreement. This is why reading the agreement and comparing total cost matters.
Read Official RBI Source →Corporate information can be checked through the official Ministry of Corporate Affairs portal: open MCA Services, choose "View Company/LLP Master Data" and enter the company name or CIN.
MCA Updates: this page does not reproduce MCA news. Please refer to the official MCA portal for current notifications and updates.
Visit the MCA Portal →Warning signs to watch for:
A CIBIL Score is a numerical summary of credit history, generated from information in a credit report maintained by TransUnion CIBIL.
Not automatically. A lower score can affect how a lender assesses an application, but lenders may also consider income, obligations, repayment history and their own credit policy. Approval is never guaranteed.
Credit history, income, employment, existing liabilities, repayment capacity, banking information, documentation, internal risk policies and applicable regulatory requirements.
Annual Percentage Rate is the effective annualised cost of a loan. Under RBI's digital lending framework it is an all-inclusive cost that is disclosed upfront, where applicable.
A Key Fact Statement is a standard summary of a loan's key terms, such as amount, APR, fees, repayment schedule and penal charges, to be reviewed before accepting the loan contract where it applies.
Flat interest is calculated on the original amount for the whole tenure. Reducing-balance interest is calculated on the outstanding amount, so the same headline rate usually costs less.
Depending on the product, this may include PAN, an officially permitted identity document, salary slips, bank statements, employment and address information, and other applicable documents.
Use only official channels, verify the organisation, understand why each document is needed, and never share OTPs, PINs or passwords.
The agreement sets out your rate, charges, repayment schedule and penal charges. Understanding it before acceptance helps you avoid surprises later.
Common signs include guaranteed approval, advance-fee demands, requests for OTP or PIN, payments to personal accounts, fake regulatory claims and unofficial websites.
Read notifications, circulars and press releases directly on the official RBI website at rbi.org.in rather than relying on forwarded messages or third-party summaries.
On mca.gov.in, open MCA Services, choose View Company/LLP Master Data, and enter the company's name or CIN to see its registered details.
Links to these organisations do not mean that they endorse IndiFunds.
Regulatory disclaimer. Regulatory information on this page is provided for customer awareness and educational purposes. References to RBI, MCA, CIBIL, banks, NBFCs or other institutions do not mean that such institution has endorsed, certified or approved IndiFunds.
Customers should verify current regulatory information directly from the relevant official source.
Product terms, pricing and eligibility remain subject to the applicable product documentation and assessment.