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True APR.
No secrets.
Loan apps quote a flat or reducing interest rate. Neither tells you the all-in cost. True APR — what RBI requires on the Key Fact Statement (KFS) — folds in interest, processing fee, GST, insurance, and subscriptions. On a ₹10,000 / 3-month loan, a 24% headline rate often hides a 60%+ true APR.
True APR
50.6%
vs advertised
+26.6%
Illustrative. Actual APR on your KFS may differ if the app charges insurance or subscriptions.
The Equation
To calculate True APR, fold every mandatory cost — processing fee, GST, insurance, subscriptions — back into the interest yield over the loan's term.
Net disbursed = sanctioned amount minus processing fee, GST, insurance, and any other upfront deduction. Total cost = all interest + all fees over the tenure.
Worked examples
₹10,000 · 3 months
24% flat + 5% PF + GST
₹25,000 · 6 months
18% reducing + 3% PF + GST
Salary advance ₹5,000 · 30 days
₹99 fee + ₹49/mo subscription
Higher if you keep the subscription.
Where to find the data
RBI's Digital Lending Guidelines (2022) mandate the Key Fact Statement (KFS) before disbursal. The KFS must show the APR. If an app skips this step, do not accept disbursal — it's a regulatory red flag.
- KFS shown before disbursal
- APR line item present in the KFS
- PF, GST, and insurance itemized
Curated app lists
- Browse all loan apps
Every review shows the real APR range, not the headline.
- Instant personal loan apps
- Salary advance apps
Related resources
Adjacent hubs
If the real cost already bit — pick the right escape route.
- File an RBI complaint — if the lender hid the APR or skipped the KFS
- Loan settlement — if the real cost already broke your budget
- CIBIL recovery — the score side of borrowing right
Every borrower guide
View all guides// deep-dives
- Loan Apps · 11 minHidden Charges in Loan Apps: APR & Processing Fees Explained
How APR, processing fees, convenience charges, and GST inflate loan app costs. Compare apps correctly and avoid costly surprises.
- Borrower Rights · 4 minLoan app says 0.5% per day? Real APR is 300%+
"0.5% per day" looks cheap until you annualise it — that is 182.5% APR. How loan apps hide true APR and how to calculate it for any offer.
- App Reviews · 5 minKreditBee, Navi, CASHe, MoneyTap: true APR compared
We ran 8 popular loan apps through Newton-Raphson IRR on a standard ₹50,000 / 12-month loan. The cheapest headline rate is rarely the cheapest loan.
- Borrower Rights · 15 minKey Facts Statement (KFS): the one-page document RBI mandates
The Key Fact Statement (KFS) is the one document RBI requires every lender to give you before disbursal. Here is how to read every line and spot the trap fees.
- Borrower Rights · 10 minFlat rate vs reducing balance vs EMI: which is your loan?
Most Indian co-op banks still quote flat rate, which is roughly double the reducing-balance APR. Three methods, one chart, the maths laid bare.
- Borrower Rights · 10 minProcessing fee, GST, insurance: 7 charges loan apps bury
Every loan app hides 5-7 charges in the fine print. Here is what each one is, what RBI says, and how to spot them before you sign.
- App Reviews · 18 min30 loan apps ranked by true APR, complaints, RBI status (2026)
Our 2026 master list: 30 popular Indian loan apps scored on true APR, RBI registration, harassment complaints, and KFS quality.
- App Reviews · 13 minCASHe vs MoneyView vs KreditBee: cheapest true APR 2026
Same ₹50,000 loan, same 12-month tenure, three apps. True APRs side by side and a decision rule for each borrower profile.
- App Reviews · 16 minKreditBee review 2026: true APR, charges, complaint history
KreditBee runs through RBI-registered NBFCs. True APR, common complaints, KFS quality, and our overall verdict for 2026 borrowers.