12 Nov 2026
The Reserve Bank of India issued the Reserve Bank of India (Digital Lending) Directions, 2025 on 8 May 2025. They apply to banks, NBFCs (including housing finance companies) and other regulated lenders when they lend digitally, and to the platforms that work for them. For you, the main points are a clear Key Fact Statement, a cooling-off period, loan money paid into your own account, and limits on how an app uses your data. The full text is on the RBI website.
Who the Directions cover
The Directions apply to digital lending by commercial banks, primary (urban) and state or central co-operative banks, NBFCs including housing finance companies, and All-India Financial Institutions. They also cover lending service providers (LSPs), which are agents of a lender that perform digital lending functions. The lender remains fully responsible for the acts and omissions of its LSP.
What the Directions say, in plain terms
Main borrower-facing rules
| Topic | What the Directions require |
|---|---|
| Key Fact Statement | The lender provides a Key Fact Statement before you commit to the loan |
| Cooling-off period | You can exit a digital loan without penalty during a cooling-off period set by the lender's Board, which cannot be less than one day |
| One-time fee on exit | The lender may keep a reasonable one-time processing fee if you exit, and this must be disclosed upfront in the Key Fact Statement |
| Disbursal | Loans are paid into your own bank account, with narrow exceptions |
| Repayment | You repay directly to the lender's bank account, not through an LSP or a third party account |
| LSP fees | The lender pays the LSP's fees. They are not collected from you |
| Offers from several lenders | An app that works with several lenders must show offers with the lender's name, amount, tenor, APR, monthly repayment, penal charges and a link to the Key Fact Statement, in an unbiased way, without deceptive design |
| Your data | Collection must be need-based, with your prior and explicit consent and an audit trail. Apps may not access your contacts, call logs, files or media. One-time camera, microphone or location access is allowed only for onboarding or KYC, with your consent. You can withhold or revoke consent |
| Where data is stored | Only on servers located within India, subject to the exceptions in the Directions |
| Grievances | Lenders and LSPs appoint nodal grievance officers. You may escalate to the RBI complaint portal if you are unhappy with the reply or if you have not received a reply within 30 days |
Dates to know
Most provisions took effect immediately on 8 May 2025. The reporting of digital lending apps to the RBI took effect on 15 June 2025, and the rules for platforms working with several lenders applied from 1 November 2025. The RBI publishes the data that lenders report about their apps. Use that directory to check whether an app you are about to use is reported by a regulated lender.
What this means for you
- Ask for the Key Fact Statement and read it before you accept. Check the APR, penal charges and any one-time fee on exit. Our guide on the Key Fact Statement and APR explains each line.
- Use the cooling-off period if you change your mind. Ask the lender how long it is and what you would pay on exit. Read the glossary entry on the cooling-off period.
- Be cautious if anyone asks you to pay a fee to an agent for a loan, or to repay into an account that is not the lender's. The Directions say repayment goes to the lender.
- Do not give an app access to your contacts, photos or files for a loan. The Directions bar this; only one-time access to the camera, microphone or location is allowed, for onboarding or KYC.
- When you compare offers on a platform, check that each shows the lender's name, APR, penal charges and a Key Fact Statement link.
- If something goes wrong, complain first to the lender's grievance officer. If there is no reply within 30 days, or you are not satisfied, you can go to the RBI. See our borrower rights page and grievance page.
How LOANZ 360 relates to the Directions
LOANZ 360 is a loan aggregator and works for partner banks and NBFCs as a lending service provider. Every loan is decided, priced, sanctioned and paid out by the lender, normally into the borrower's own bank account. Our digital lending disclosures page sets out the disclosures required of us.
A note on the current text
The RBI updates its directions from time to time. Before you rely on a specific rule, check the current text on the RBI website, and read our guide on digital lending safety.
Related reading: Key Fact Statement and APR, glossary entry on the cooling-off period, borrower rights page, grievance page.
Sources
- Reserve Bank of India (Digital Lending) Directions, 2025, issued 8 May 2025 (RBI/2025-26/36), rbi.org.in (link in the text above).
- This note summarises public rules in general terms. It is not legal advice.