When applying for a personal loan, business loan, or any financial service, trusting the right lender is extremely important. With so many loan scams happening these days, it’s crucial to verify whether the lender (bank, NBFC, or loan app) is genuinely registered with the Reserve Bank of India (RBI).
In this blog, let’s understand how you can easily verify the authenticity of a lending entity and protect yourself from scams!
Why Is Verification Important?
Many scammers pose as financial institutions, offering easy loans at low interest rates, but they are not authorized by RBI.
If you borrow from an unregistered lender, you risk:
- Extremely high interest rates
- Hidden charges
- Data theft
- No legal protection in case of fraud
That’s why verifying the lender’s registration is the first step toward a safe loan journey.
How to Check if a Bank or NBFC is Registered with RBI?
✅ Step 1: Visit the Official RBI Website
Go to the official RBI website: rbi.org.in
✅ Step 2: Search for the Lender’s Name
On the RBI site, under the “NBFC List” or “Banks List” section, search for the name of the bank or NBFC.
If the name appears, it means the entity is officially registered with RBI.
✅ Step 3: Verify the License Number
Every authorized lender has a unique license number issued by RBI.
Check whether the license number mentioned by the lender matches with the details listed on RBI’s website.
✅ Step 4: Cross-Check the Official Website
Visit the lender’s official website to verify their contact details, customer care number, and office address.
Beware if they only offer WhatsApp numbers, personal email IDs, or no physical address!
Signs of a Fake Lender
🚫 No official website or fake-looking websites
🚫 Personal mobile numbers for communication
🚫 No verification of documents like CIBIL score
🚫 Asking for advance payment before loan approval
Remember: Legitimate banks and NBFCs will never ask you for upfront payments before sanctioning your loan.
Final Tips for Safe Borrowing
- Always deal directly with banks or RBI-registered NBFCs.
- Never transfer money to personal accounts.
- Verify every document carefully.
- Do not share OTPs, bank details, or PAN details with unknown sources.
Need a List of Genuine Loan Providers?
If you want a verified list of trusted loan providers, simply comment “Genuine Loan” below, and our team at Shivafinz will guide you to safe options!
✅ Stay safe. Borrow smart.
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