Fake Loan Apps: What are they and how to identify them?

Reviewed by: Anil Sinha

  • Updated on: 8 Jul 2024
  • Published on: 8 Jan 2024
Fake Loan Apps: What are they and how to identify them?

It has become quite difficult to identify whether a mobile loan app is real or fake as umpteen fraudulent applications offer loans to customers with wrong intentions.

Such cases have increased due to a rise in digital lending. However, you can avoid falling into a trap set by these applications by taking certain precautions. Read more about these fake applications providing small personal loans and how to identify them and prevent such scams.

What are Fake Loan Apps?

There are two types of fraudulent lending applications. Those belonging to the first set of scammers extort loan fees by promising quick access to money. The second set is even worse. They levy high interest rates on loans and exceed the ceiling set by the RBI.

How to Identify a Fake Loan App?

Quick access to credit may seem only a few clicks away in this digital age. However, the lender promising instant money can also be a scammer. 

Here are some ways by which you can identify fake loan apps in India:

Doesn’t Follow the RBI Guidelines on Ethical Lending

Remember, loan apps need to follow the RBI guidelines in India. If an app doesn’t follow them, it certainly is a red flag that the app may be a fake. 

Has a Fake or No Website

This may also be an identifier of a fake lending app. Know that certain fraudulent lenders also create fake websites to scam borrowers. 

Doesn’t Offer a Loan Agreement

Fake loan apps generally don’t provide loan agreements to hide necessary information. To assess borrowing costs, knowing about interest rates and charges is crucial. 

Asks for Processing Fee in Advance

A genuine lender never requires you to pay the processing fee for a loan in advance. Instead, you’ll have to pay these charges only after your loan application has been approved. Avoid any transaction with a lender requesting you to pay the processing fee or other charges in advance.

Requires No Documentation

As per the RBI mandate, lenders must collect your personal information when providing a loan. It may be a red signal if a lender doesn’t require you to submit any documentation.

Has Majority of Negative Reviews   

You may find a majority of negative reviews for fraudulent lending applications online. Hence, check for the reviews of a lender before applying for an instant loan.

How to Avoid Falling for a Fake Loan App?

Fraudulent lending applications can steal your hard-earned savings and leave you in financial turmoil. You must take these steps to prevent falling into a trap set by fake loan companies in India:

Borrow from RBI-approved Lenders 

Before applying for a loan, check if the lender’s name features in the list of lenders approved by the RBI. Once you check this, you can rest assured that you aren’t falling into any trap. Check this list on the official website of the central bank.

Check the Lender’s Website

To validate a lender’s authenticity, you can check if their website is secured or not. A secured website generally has ‘https’ added at the beginning of the URL.

Read the Terms and Conditions

If the lender doesn’t provide you with an agreement, demand one before availing of a loan. So, read all the terms and conditions carefully before you plan to take a loan.

Assess Loan Fees

Before applying for a loan, check the charges associated with a loan facility. Note that some loans also carry hidden charges. 

Check App Permissions

As per the RBI guidelines, a lender cannot store a borrower’s information beyond their personal details. Check if the application asks for access to data that it may misuse in the future.  

How You Can Identify Fibe is a Real Personal Loan App?

Looking for instant credit while avoiding being a victim of a shady application? Fibe can be your best bet, the authenticity of which you can check in the following ways.

  • You can check on the RBI’s website if Fibe is a regulated entity
  • You can also find online reviews of the customers to know about their experiences
  • You can also review Fibe’s certification and security features, which include PCI DSS App-based journey and ISO/IEC 27001 Certification

List of Fake Loan Applications in India

Protect your hard-earned money by staying away from fraudulent lenders. Here is a fake loan app list in India removed by Google from its platforms in December 2023:

  • GuayabaCash
  • PréstamosCrédito
  • Préstamos De Crédito-YumiCash
  • EasyCredit
  • FlashLoan
  • Go Crédito
  • AA Kredit
  • 4S Cash
  • Cashwow
  • Amor Cash
  • Rápido Crédito
  • Finupp Lending
  • CrediBus
  • TrueNaira
  • EasyCash
  • Instantáneo Préstamo
  • Cartera grande

Falling for the trap set by fake loan apps can dwindle your finances and push you into a debt cycle. You can get genuine Personal Loans of up to ₹5 lakhs from Fibe, which is an RBI-registered lender. Download the Fibe Personal Loan App to get a loan with quick sanction and minimal paperwork.

FAQs on Fake Loan Apps in India

Which loan apps are RBI-approved?

Reserve Bank of India has approved many loan applications. Fibe is one such lender that provides quick personal loans on the principles of ethical lending. 

How do you find fake loan apps?

You can find fake loan apps by following certain strategies. Most importantly, check if the application is registered with the RBI.

Is the Fibe loan app safe?

Yes, Fibe is a genuine loan application registered with the Reserve Bank of India. We follow the ethical lending guidelines laid down by the central bank.

How do you know if a loan is real?

You can check if the lender is a regulated entity on the RBI’s website to determine if a loan offer is real. 

Which loan app is banned by the RBI?

Reserve Bank of India has prohibited the use of the following lending applications and more.

  • Lend Now
  • Cashfull
  • Cash Ray
  • RupeeGo 
  • Punch Money
  • Grand Loan
  • Lendkar
  • CashMO
  • Infinity Cash
  • DreamLoan
  • Kredit Mango
  • Rupee MO
  • CreditLoan
  • Mobipocket

How do you check if a personal loan app can be trusted?

You can employ the following strategies if you are thinking, ‘Is a loan app fake or real?’-

  • Review the lender’s website and certifications
  • Check if the lender is a regulated entity under the RBI
  • Read customer reviews 

How do I block fake loan apps?

While you cannot block them, you can report fraudulent activities of such apps to the app store and competent authorities. 

Which loan app is safe?

Lenders regulated by the RBI are considered safe for borrowing. For instance, Fibe is a regulated application under the central bank.


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