Bhai, "9% per month" ka asli matlab kya hai?
Tumne ₹5,000 ka instant loan liya. App bola: "Just 9% monthly interest, super affordable!" 14 din baad bill aaya ₹7,800. Sochne mein lagta hai galti hui hogi — par no, math sahi hai. App ne tum se APR (Annual Percentage Rate) ~270% charge kiya hai, legally, by surfacing only the monthly number.
True APR kya hota hai?
APR = saal bhar ka effective cost of borrowing, sab fees aur GST mila ke. RBI ki Digital Lending Guidelines (Sept 2022) ke hisaab se har lender ko Key Fact Statement (KFS) mein APR disclose karna hai — but most loan apps usse fine-print mein dabaa dete hain.
Real example: ₹5,000 / 14 din
| Item | Amount |
|---|---|
| Loan amount (principal) | ₹5,000 |
| Processing fee (15% + 18% GST) | ₹885 |
| Disbursed to your bank | ₹4,115 |
| Repayment after 14 days | ₹5,400 |
| Net cost for 14 days | ₹1,285 |
Tu ne pehle hi ₹885 katwa diya, fir 14 din baad ₹5,400 chukana hai. Effectively tu ne ₹4,115 udhaar liya aur ₹5,400 wapas kar raha hai — that's 31.2% in 14 days.
Annualised: (1 + 0.312)^(365/14) - 1 ≈ 250%+ APR.
Calculate your own true APR
Use the EMI Truth Calculator — paste principal, fees, GST, repayment, tenure → get the real number with one click. No login.
Red flags in the KFS
- Processing fee > 5% of principal — extracted upfront, not amortised.
- Tenure under 30 days — tiny window means even small fees become huge APR.
- "Convenience charge" / "platform fee" — same thing, different label.
- No KFS link before signing — RBI violation, refuse to sign.
What RBI actually says
Per the RBI Digital Lending Guidelines, every regulated lender must:
- Show APR upfront in the KFS, not hidden in T&C.
- Allow a cooling-off / look-up period (3 days minimum) — return the loan, pay only proportionate APR + processing fee.
- Not charge any fee post-disbursement that wasn't disclosed in KFS.
If your app skipped the KFS entirely, file at RBI Sachet.
Bottom line
The "monthly interest rate" ek marketing trick hai. Always compute APR before signing. If your true APR > 36% (the practical RBI cap for unsecured personal loans), question it.
Disclaimer: This is informational only. We are not financial advisors. Always verify with the regulator before acting.