RBI Approved Top 5 Loan Apps in India

Personal loans can be very helpful in times of unexpected financial emergencies. However, in India, personal loans from banks become less viable due to tedious paperwork and slow disbursements. Thus, online loan apps could come to your rescue being faster and more convenient alternatives.

However, it's crucial to choose only the safe and reliable options. That's where RBI approval comes into play. Let's explore the top 5 RBI-approved loan apps in India.

Why are Loan Apps Important?

According to a survey by Saral Credit - a fintech platform, at least 67% of Indians have taken a loan at least once in their lifetime to cater to some financial needs. Also, a survey by Way2News found out that 70% of Indians, despite knowing that online loan apps incur high interest rates, have taken loans.

So, it’s evident that online loan apps have revolutionized the borrowing space in India.

And when we are in need of emergency funds, we prefer taking loans from online loan applications. But how did these loan applications gain popularity? Why are they becoming so important in the lives of ordinary Indians from not just metro cities, but Tier 2 and Tier 3 cities as well?

Here are the reasons -

● Convenience: Loan apps allow you to apply for loans from anywhere, anytime, without the need to visit a bank.

● Speed: With instant approval and quick disbursal, you can get the funds you need within minutes or hours, which is perfect for emergencies.

● Accessibility: These apps are useful for individuals who may not have easy access to traditional banking services.

● User-Friendly: Most loan apps are designed with a user-friendly interface, making it easy for even non-tech-savvy individuals to use them.

● Transparency: Loan apps provide clear information about interest rates, repayment schedules, and other terms, helping you make informed decisions.

But this doesn’t mean you can take a loan from any online loan app. Why? Let’s find out.

What are the Top 5 RBI-Approved Loan Apps in India?

Our extensive research suggests that the following are the most popular and highly used RBI-approved loan apps in India.

Moneyview

Moneyview is a popular loan app known for its quick approval process and user-friendly interface.

It offers personal loans to salaried and self-employed individuals, besides multiple free offerings like loan calculators and credit trackers.

Moneyview is known for its simple and efficient process by which anyone living in any part of India, from Metro cities to Tier 2 or Tier 3 towns can even obtain loans.

Key Features:

● Loan amount ranging from Rs.5,000 to Rs.10 Lakh

● Flexible repayment tenure from 3 to 60 months

● Instant approval and disbursement within 24 hours in most cases

Benefits:

● No collateral required

● Minimal documentation

● Low interest rates starting from 10% p.a.

Drawbacks:

● Strict eligibility criteria

How to Apply:

1. Download the Moneyview app from the Play Store.

2. Register using your mobile number.

3. See if you meet the eligibility criteria for accessing a personal loan in just 2 minutes.

4. Choose the loan amount and tenure you want to apply for.

5. Fill out the online loan application form and upload the necessary documents for verification.

6. Get instant approval and the loan amount will be disbursed to your account within 24 hours.

NAVI

NAVI is a top-rated RBI-approved loan app in India.

It ensures a 100% paperless and digital process by which you can obtain multiple financial products like home loans, personal loans, and cash loans, at competitive interest rates.

Beyond the loans, NAVI also offers a UPI facility, health insurance, and mutual funds.

Key Features:

● Loan amounts up to Rs.20 Lakh

● Tenure options from 12 to 72 months

● Quick loan disbursal within minutes

Benefits:

● Fully digital process

● Transparent terms and conditions

● Low interest rates starting from 9.9% per annum

Drawbacks:

● Starting interest rates are extremely steep and keep increasing

● High eligibility requirements

How to Apply:

1. Download the NAVI app and sign up using your phone number.

2. Complete the KYC process by uploading your documents.

3. Select the loan amount and tenure.

4. Check the repayment details and confirm.

5. Receive instant loan approval and disbursal.

KreditBee Loan App

KreditBee is a popular app that caters to young Indian professionals, salaried and self-employed alike.

It offers small to medium-sized loans, with flexible repayment options. With sufficient documentation, you can also obtain business loans.

Key Features:

● Loan amounts from Rs.1,000 to Rs.5 Lakh

● Tenure ranging from 2 to 15 months

● Fast approval and disbursal process

Benefits:

● Minimal documentation

● Instant loan processing

● Flexible repayment options

● Immediate bank transfer

Drawbacks:

● Higher interest rates compared to other apps

● Additional processing fees are also applicable

How to Apply:

1. Install the KreditBee app and register.

2. Complete the KYC verification.

3. Choose your loan amount and tenure.

4. Submit the application and get the amount credited to your bank account.

Bajaj Finserv

Bajaj Finserv is one of the most popular NBFCs offering hundreds of financial products in India.

It has an umbrella of offerings, including multiple loans like personal loans, home loans, cash loans, car loans, two-wheeler loans, etc. Besides being a robust loan app, it offers you credit card facilities and even an e-commerce store to shop your favorite products online.

Key Features:

● Loan amounts up to Rs.25 Lakh

● Flexible tenure from 12 to 60 months

● Quick disbursal within 24 hours

Benefits:

● High loan amounts

● Competitive interest rates

● Easy application process

Drawbacks:

● High processing fees

● Strict eligibility criteria

● Unprofessional customer support behavior

How to Apply:

1. Download the Bajaj Finserv app and sign up.

2. Fill in the loan application form.

3. Upload the required documents.

4. Wait for online KYC through calls and other approval checks.

5. Get the loan sanction details after confirmation and approval.

6. Finally, get the loan amount disbursed to your bank account.

CASHe

CASHe is an app that’s made for young, salaried professionals in India.

Besides offering instant personal loans, CASHe offers other relevant financial products like e2W loans, pre-approved CASHe limit, and even a Buy Now Pay Later (BNPL) option.

Key Features:

● Loan amounts from Rs. 3,000 to Rs. 4 Lakh

● Tenure from 3 to 18 months

● Instant approval and disbursal

Benefits:

● Minimal documentation

● No collateral required

● Competitive interest rates

Drawbacks:

● Processing fees

● Higher interest rates for shorter tenures

How to Apply:

1. Download the CASHe app from the Play Store or App Store.

2. Register and complete the KYC process.

3. Select the loan amount and tenure.

4. Submit the application and receive instant approval and disbursal.

Why Should You Only Go With RBI-Approved Loan Apps in India?

When you’re looking for a personal loan, it’s essential that you obtain it from a credible and secure loan app that’s approved by the RBI. Here’s why -

● Safety and Security

RBI-approved loan apps follow strict guidelines to protect your personal and financial data. In contrast, unapproved loan apps often misuse personal information, accessing contact lists and photos to harass and blackmail borrowers.

According to cybersecurity experts from CloudSek, at least 55 illegal apps, primarily operated by foreign entities, exploit loopholes and use aggressive, unethical recovery tactics.

● Regulatory Compliance

RBI mandates that all legitimate loan apps must adhere to specific rules, including clear disclosure of interest rates and fees, and prohibition of unfair practices. These regulations ensure that borrowers are not exploited with exorbitant interest rates or hidden charges.

Other loan apps, on the other hand, frequently ignore these rules, charging interest rates as high as 60% leading to financial and emotional distress for borrowers.

● Consumer Protection

RBI-approved loan apps are subject to regulatory oversight, providing a mechanism for addressing grievances. In contrast, victims of unapproved loan apps often find themselves without recourse, facing threats and harassment with little to no support from authorities.

Investigations have revealed that there are at least 700 fraudulent loan apps in India that try to victimize common people using their financial needs.

● Legal Recourse

Using an RBI-approved app gives you legal protection. If anything goes wrong, you can report the issue to the authorities, and the app is legally bound to resolve it.

Apps that are not approved by the RBI operate outside the law, making it difficult to hold them accountable. Cybercrime units are often ill-equipped to handle such cases.

● Ethical Practices

RBI-approved apps are required to follow ethical lending practices, ensuring transparency and fairness in their operations. Unapproved loan apps, however, often employ deceptive tactics, misleading borrowers with promises of easy money while hiding the true cost of the loan.

This can lead to borrowers falling into debt traps and experiencing severe financial hardship.

What is the RBI Mandate for Online Loan Apps in India?

The Reserve Bank of India (RBI) has laid down specific guidelines for online loan apps to ensure consumer protection and fair practices. Here are the key points of the RBI mandate:

● Registration: All loan apps must be registered and regulated by the RBI.

● KYC Compliance: Loan apps must follow Know Your Customer (KYC) norms to verify the identity of the borrowers.

● Transparent Disclosure: The RBI mandates that all loan terms, including interest rates, fees, and repayment schedules, must be clearly disclosed to the borrower.

● Fair Practices Code: Loan apps must adhere to the Fair Practices Code prescribed by the RBI, ensuring ethical lending practices.

It’s true that these online loan applications that are transforming our digital borrowing experience are mostly NBFC-owned.

Although traditional bank apps also offer a series of financial solutions, NBFC apps have gone a step ahead with their modern offerings. But are there any reasons why people prefer these online loan apps more than native bank apps?

Why do People Prefer NBFC-owned Online Loan Apps More than Traditional Bank Apps in India?

The following reasons for NBFC-owned online apps getting more popular in India for getting loans -

Faster Processing: Loan apps generally have a quicker approval and disbursal process compared to traditional banks.

Simplified Documentation: Loan apps often require minimal documentation, making the application process smoother and quicker.

Accessibility: Loan apps are more accessible, especially for those who do not have easy access to bank branches.

User Experience: The interface and user experience of loan apps are often more intuitive and user-friendly than traditional bank apps.

Conclusion

With RBI-approved loan apps in India, you can have a safe and reliable borrowing experience.

Besides protecting your personal and financial information with advanced security protocols, these loan apps offer you RBI-mandated competitive interest rates, transparent fee structures, and reliable customer support.

With their ethical lending practices, you can rest assured that your financial data won’t be mishandled by sketchy apps.