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Borrowing safely: India.

A take-home sheet for people at the session. Other countries: United States · United Kingdom · Canada · Australia · New Zealand · Philippines.

Moraph for Good · Fluent

Borrowing safely: India

Handout · moraph.org/commons/sessions/fluent/borrowing-safely

The cost of a loan is everything you pay back, not the monthly payment. This sheet has the questions to ask before you borrow and where to get free help where you live.

Three questions for any lender

  • What is the yearly rate including fees?
  • What is the total I will pay back?
  • What happens if I pay late or early?

Warning signs

  • Pressure to sign today
  • No questions about whether you can afford it
  • A fee before you get the loan, which is often a scam
  • A lender that wants to keep your ID or bank card

Cheaper options to ask about

  • Small loans from credit unions or community lenders
  • A payment plan with the company you owe
  • Free, not-for-profit debt advice

If you’re struggling

  • Contact the lender before you miss a payment
  • Complain in writing, and keep copies
  • Use the official routes below if it isn’t resolved

In India

  • Ask for the Key Facts Statement. For retail loans, lenders regulated by the Reserve Bank of India (RBI) must give you a Key Facts Statement (KFS) in a language you understand. It shows the annual percentage rate (APR), which includes all the lender’s charges. Fees not listed in the KFS can’t be charged during the loan without your explicit consent.
  • Digital loans and apps. Under RBI rules, a digital loan must be paid into your own bank account, and lending apps must not access your contact list, files, media or call logs. RBI warns never to download lending apps from unknown sources.
  • A cooling-off period. For a digital loan, you can exit during an initial cooling-off period of at least one day by paying back the principal and the proportionate APR, without a penalty. The lender may keep a reasonable one-time processing fee, which must be shown in the KFS.
  • Recovery agents. If a lender assigns a recovery agent after a default, it must send you the agent’s details by email or SMS before the agent contacts you.
  • Complaints and the RBI Ombudsman. Complain to the lender first. If it doesn’t reply within 30 days, or you aren’t satisfied, you can complain free to the RBI Ombudsman through RBI’s Complaint Management System, generally within 90 days. The scheme covers banks and certain NBFCs, and RBI’s toll-free Contact Center on 14448 explains how to file.

Official places to check:

  • Reserve Bank of India: www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12663&Mode=0
  • Reserve Bank of India: www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12848
  • Reserve Bank of India: rbikehtahai.rbi.org.in/dpaw.html
  • Reserve Bank of India: www.rbi.org.in/Scripts/FAQDisplay.aspx?Id=153

More free official help in India: moraph.org/commons/help/financial-literacy/in

General information, not advice about your own situation. Checked 20 October 2026. If an official source says something different, it is right. Free to copy and adapt. moraph.org/commons/sessions/fluent/borrowing-safely