Digital Loan APR Not Disclosed — True Cost Hidden
A digital lending app or NBFC gave you a loan but disclosed only a "monthly rate" or "flat rate" without showing you the Annual Percentage Rate (APR). The actual cost of the loan — including processing fees, insurance, platform fees — was not shown before disbursal.
⚖️Your Rights Under RBI Regulations
A Key Fact Statement showing the APR must be provided before any loan disbursal.
APR must include all fees, insurance premiums, and charges — not just the stated interest rate.
If the KFS was not provided before the loan was credited, this is a violation of RBI/2022-23/111.
You can dispute any charge not disclosed in the KFS.
💰 What You Can Recover
Charges not disclosed in the KFS are potentially unenforceable. Excess amounts paid above the disclosed costs can be claimed back.
⏱ Response Deadline
30 days for written complaint.
📋Step-by-Step — What to Do
Calculate the true APR using: (Total Finance Charge / Loan Amount) × (365 / Tenure Days) × 100.
Write to the lender's Grievance Redressal Officer demanding explanation of all charges and the KFS.
File with RBI Ombudsman at cms.rbi.org.in (select NBFC category).
For unregistered apps, file at sachet.rbi.org.in and cybercrime.gov.in.
🏛 Where to Escalate If Bank Doesn't Respond
sachet.rbi.org.in + RBI Integrated Ombudsman (for registered NBFCs)
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