The paperwork from Chinmay Finlease Ltd's app, "Lendit", reads less like a loan and more like a trap with the borrower's signature on it. One short loan was treated as closed and a fresh, larger loan disbursed to the same borrower just three days later - a textbook rollover.
Flat in name only
The agreement labels a 36.5% rate as "flat" while charging it on a reducing balance - a framing that understates the true cost. It also pre-authorises visits to the borrower's home and workplace and contact with the borrower's employer. A later demand letter goes further, warning of consequences to the borrower's "employment, onboarding, financial, travel, immigration" assessments.
What the clauses can and cannot do
Pre-written permission to visit a workplace or contact an employer does not override the RBI's Fair Practices Code, which bars exactly that kind of pressure. A clause a borrower had little real choice but to accept cannot license unlawful recovery - and the threats in a demand letter remain reportable whatever the agreement says.
Know your rights as a borrower
The lenders in these reports are RBI-registered NBFCs, which means the Reserve Bank of India's Fair Practices Code binds them. Under it, recovery agents may not call before 8 am or after 7 pm; they may not contact your employer, family or references to pressure you; abuse and threats are prohibited; the all-in interest rate (APR) must be disclosed up front in the Key Facts Statement; and recovery may happen only by lawful means. The Government of India has blocked more than 600 predatory digital-lending apps and the RBI has issued repeated advisories - but the entities named here are registered, regulated companies, which makes their own paperwork the story.
How to report a loan app: the official channels
You do not need to pay anyone to be heard. Report a lender to RBI Sachet (sachet.rbi.org.in), and if a regulated entity does not resolve your complaint within 30 days, escalate to the RBI Ombudsman through the Complaint Management System. For threats, harassment or data misuse, file at the National Cyber Crime portal (cybercrime.gov.in) or call the helpline 1930. You may also file a consumer complaint. Keep every screenshot, email and call log - that record is your evidence.
Frequently asked questions
Can a loan agreement let the lender visit my office or contact my employer?
A clause can say so, but it cannot override the law. The RBI Fair Practices Code bars contacting your employer or visiting your workplace to apply pressure, regardless of what an agreement like Lendit's pre-authorises. You can report such conduct, and the demand-letter threats, to the RBI and the cyber-crime portal.
Can a loan app call my office or family?
No. Under the RBI Fair Practices Code, recovery agents may not contact your employer, family or references to pressure you, may not call before 8 am or after 7 pm, and may not use abuse or threats. Approaching your workplace or contacts to shame you over a loan falls outside lawful recovery, whatever an app's agreement says.
How do I report a loan app to the RBI?
Start at RBI Sachet (sachet.rbi.org.in). If the NBFC does not resolve your complaint within 30 days, escalate to the RBI Ombudsman through the Complaint Management System. For threats or data misuse, use the National Cyber Crime portal (cybercrime.gov.in) or call 1930, and keep all screenshots and statements.
Source
Lenders' own Key Facts Statements, agreements and recovery emails; RBI Register of NBFCs; documented borrower complaints