Offer check

What does this instant loan really cost a year?

Many instant-loan apps hide the real cost behind fees taken upfront and very short repayment times. Enter an offer to see what it truly costs per year, the red flags, and how it compares with a fair rate.

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Try an example

Fictional offers, not real lenders.

The offer

Copy the numbers from the loan screen or agreement.

Showing “Example: 7-day app loan”. Change any number to check your own offer.

The true cost

True APR

1,293%

Yearly rate including every fee, worked out on the money you actually receive.

Effective annual rate (compounded): > 10,00,000%

Cost verdict

Predatory-level cost

Above 100% a year: at this rate, a year of borrowing would cost more than the money you received. Look at other options first.

You get ₹4,115 and pay back ₹5,250 over 7 days. That is ₹1,135 for the use of the money: a true APR of 1,293%.

You receive: ₹4,115
You repay in total: ₹5,250
Total cost of credit: ₹1,135
Cost as % of what you receive: 27.6%
Upfront deductions: ₹885 (17.7% of sanction)
Time to repay: 7 days

What you get vs what you pay

You get₹4,115

You pay₹5,250

Money you received₹4,115
Fees you never received₹885
Interest and charges₹250

Red flags

Serious: 2 · Warning: 1 · Note: 1

SeriousTrue APR above 100%
Counting the fees and the repayment time, this costs 1,293% a year.
SeriousLarge upfront deductions
17.7% of the sanctioned amount is taken before you get the money (guide line: 10%).
WarningVery little time to repay
Repayment is due within 7 days. Short terms often push people to borrow again just to repay.
NoteYou receive less than the sanctioned amount
₹885 is taken out upfront, but you repay as if you had received the full amount.

Check the app too

Turn on anything that happened. Each one adds a red flag.

The app asked for access to my contacts, photos or call logs
I was not shown a Key Fact Statement (KFS) before signing
The money would be paid to, or collected through, an account that is not mine or the lender's
I was pressured to accept immediately, or threatened or harassed
I could not verify that the lender is regulated (a bank or an RBI-registered NBFC)

Compared with a fair rate

At a Pathway “fair” tier rate this would cost ₹1,121 less.

Same ₹4,115 received, same payment dates, priced at Pathway's illustrative rates.

This offer· 1,293% APRCost ₹1,135
“Fair” tier · 18% a yearCost ₹14(₹1,121 less)
“Excellent” tier · 10.5% a yearCost ₹8(₹1,127 less)

See your path to a fair-rate loan

Pathway's tiers are illustrative rates for applicants who clear the approval line. They are not an offer of credit.

What you can do

General information for borrowers in India.

Ask for the Key Fact Statement

RBI's rules require regulated lenders to give you a Key Fact Statement (KFS) before you sign, showing the all-inclusive APR, every fee and the repayment schedule. Charges not in the KFS cannot be added later without your explicit consent.

Check the lender is regulated

The lender should be a bank or an RBI-registered NBFC. RBI publishes lists of regulated entities on its website, and a lending app should clearly name the regulated lender behind the loan.

rbi.org.in (opens in a new tab)

Never share contacts or photos

Under RBI's digital lending rules, lending apps should not access your contacts, files, photos or call logs. One-time access to the camera, microphone or location is allowed only for KYC, with your consent.

Money only to and from your account

Loan money and repayments should move only between your bank account and the lender's account, not through an agent's or another person's account.

Use the cooling-off period

Digital loans come with a cooling-off (look-up) period in which you can exit by repaying the principal and the proportionate APR, without a penalty.

Report unauthorised lending apps

Report unauthorised lending apps or entities on RBI's Sachet portal.

sachet.rbi.org.in (opens in a new tab)

Threats, harassment or fraud

Call the national cyber crime helpline 1930 or report at cybercrime.gov.in. You can also go to your nearest police station.

1930 cybercrime.gov.in (opens in a new tab)

Complaint about a regulated lender

Complain to the lender first. If it is not resolved within 30 days, or you are unhappy with the reply, you can complain to the RBI Ombudsman at cms.rbi.org.in.

cms.rbi.org.in (opens in a new tab)

This is general information, not legal or financial advice. Rules change: check the latest on rbi.org.in.

An illustrative simulation for education. Not financial or legal advice, not a credit decision, and not affiliated with any lender.