Responsible Borrowing

1. Borrow only what you need

Just because you are offered a larger amount does not mean you should take it. A bigger loan means a bigger EMI, more interest, and more risk if your income changes. Define the purpose and the minimum amount you actually need, and borrow to that figure.

2. Understand your EMI affordability

Before applying, work out your monthly surplus - income minus committed expenses (rent, existing EMIs, utilities, food, insurance). As a general rule of thumb, many financial advisors suggest keeping total monthly EMIs within roughly 40-50% of take-home income, leaving room for emergencies. Use our EMI calculator to see how a new EMI changes your budget, and keep a savings buffer for at least a few months of EMIs if possible.

3. Compare the total cost, not just the rate

The headline interest rate is only part of the cost. Compare offers on total cost:

• Processing fees (often 0.5-2% of the amount, plus GST).
• Prepayment / foreclosure charges if you plan to repay early.
• Penalty clauses for late payments (usually a % per month of the overdue amount).
• Total interest over the full tenure - a longer tenure lowers the EMI but raises total interest.
• Hidden costs - documentation charges, insurance bundled into the loan, etc.

Ask lenders for a full cost sheet or check the product page terms before you sign.

4. Avoid multiple simultaneous applications

Applying to several lenders at once in a short window creates multiple hard credit inquiries, which can lower your credit score and make you look credit-hungry. Instead, research first, then apply selectively. Our single-enquiry approach exists precisely for this - we can help you narrow the options before you formally apply.

5. Interest rate literacy

Be clear on how rates are quoted:

• Reducing-balance rate - interest is charged on the outstanding principal each month. Standard for personal, business, home and property loans.
• Flat rate - interest is charged on the full principal for the whole tenure, which is costlier. If a lender quotes a "flat" rate, convert it to an effective rate before comparing.
• APR / effective annual rate - the annualised rate that includes fees, giving a better comparison across offers.
• Regulated and unregulated - prefer lenders who are banks, registered NBFCs or governed entities. Confirm the lending entity is legitimate before sharing documents or paying anything.

6. Warning signs of predatory lending

Walk away from any lender or agent who:

• Guarantees approval regardless of your credit profile.
• Asks for advance fees before disbursing a loan ("processing", "insurance", "release" charges).
• Pressures you to decide today or hides the real cost in confusing paperwork.
• Asks for your OTP, PIN, passwords or card details.
• Says no documents needed or offers loans that seem too easy to be true.
• Collects your data without a clear, written privacy notice.
• Operates through an app or website with no registered entity behind it.

Report suspected unlicensed digital lending to the RBI Sachet portal (sachet.rbi.org.in) and contact the National Consumer Helpline at 1915.

7. Protect your credit score

• Pay EMIs and credit card dues on time - payment history is a major factor in your score.
• Don't use credit limit close to capacity for long periods.
• Check your credit report occasionally and correct errors.
• Close unused cards strategically; don't open and close cards repeatedly.

8. Be alert to fraud

Our team, and genuine lenders, will never ask for your OTP, PIN or internet banking password. If someone claiming to be us (or a lender) asks for these, disconnect and report it. If you are unsure, call us on +91 9150921761 to verify.