Is Personal Loan Available on Google Pay?
Before taking a loan on platforms like this, have you checked whether it is RBI registered or not? Is Google Pay RBI registered? Do you know what happens if a platform is not RBI registered?
In today’s post, you’ll learn step by step how to find out whether a platform is RBI registered before taking a loan, what all can happen if it is not RBI registered, and how to take a personal loan on GPay.
When it comes to loans, if we need a personal loan in an emergency situation, the first place we all instinctively prioritize and ask is the bank. Whether it’s a government bank or a private bank, the first thought that comes to our mind when we hear “personal loan” is that we should go and ask the bank.
Why banks reject personal loans
But in banks, there are many chances that the loan may get rejected or you may not get a loan at all. That’s where people start looking for many other options. But why exactly is your loan getting rejected here? There are reasons. If you look at them low CIBIL score: if your CIBIL score is very, very low, some banks will refuse to give you a loan. Similarly, if you have a poor financial background if you have taken many loans and haven’t repaid them properly, and those records are visible to them even then you may not get a loan.
Likewise, poor loan history if you’ve taken loans from many places and your credit score has been affected because of that history that too will be a reason for your loan rejection. And other reasons let’s say you have some other kind of background, a bad background, or a bad history even then they may quote such reasons and reject your loan.
Because of these kinds of reasons, when loans get rejected, what do people do as the next option? So what’s the next option? If you look at it, the next two options people choose are NBFCs. There are many finance companies like Bajaj and Muthoot Finance, right? Non-Banking Financial Corporations. So people go to these places and ask for loans. Even there, there are some eligibility criteria.
Even though compared to banks the interest rates at NBFCs may be higher, they still have certain eligibility criteria. They may require a certain level of CIBIL score, or in some places they may ask for proof of income. Or in some places, they may definitely ask about your work history. Even there, if they don’t get a loan, then as the next option, what do they do? They turn towards loan apps.
Loan apps and RBI registration importance
What is this loan app? These loan apps are such that if you simply go to the app store and type “loan,” you’ll see many loan lending applications. But before deciding to download those apps and take a loan from them, do we think about one thing? Are these RBI registered? Because if we take a loan from a bank, it is RBI registered. And similarly, if we take a loan from an NBFC, some NBFCs are RBI registered. But whether all these loan apps have RBI registration there is no guarantee of that. We can’t even easily check it.
Risks of non-RBI registered loan apps
You might get the question: why should it be RBI registered? Look at what can happen. If it is not RBI registered, when you download that app and take a loan amount through that app, they will ask for access. Access to what all? Unwanted access to personal details they will ask for access to your photos and access to your contacts.
Just like when we download an app now, they ask for access to the camera, access to photos, access to contacts, and location all of it, right? Similarly, these loan apps ask for all that, and if we give access to everything, let’s assume we also take the loan. When the time comes to repay that loan, or if you don’t repay it, they may immediately charge excessive interest without any proper information. If we refuse that, there are chances of blackmail. Many such cases have been registered.”
This kind of blackmail means they may get access to your contact list. Through that access, they could call your contacts and engage in some activity that could damage your image. Or they might use your photos to blackmail you. So all of this can lead to a completely unsafe situation with a lot of chances of things going wrong. That’s why, before taking a loan, it is extremely important to check whether the application or the platform is RBI-registered or not.
The reason I’m saying this is: if it is RBI-registered, then if any problem arises, you can file a complaint with the RBI Ombudsman. Then they will take action. If someone under their control meaning a platform that is registered under them has cheated people, and it comes under their jurisdiction, then we can safely handle certain issues.
How to check RBI-registered NBFC list
So now, for the question “How do I find out whether a platform is RBI-registered or not?”, here is the explanation. How to find if it is RBI-registered? First, go to rbi.org.in, which is the official website of the RBI. Go to that website. Choose your language Tamil, English, Kannada, anything is fine. On the left-hand side at the top, you’ll see an option called “RBI Regulated Entities.” Click on that. Scroll down, and under the option NBFC (Non-Banking Financial Corporation), you’ll see a PDF.
What it says is “List of NBFCs and ARCs registered with RBI.” Download that PDF. Once you download it, you’ll see that this PDF lists more than 9,000 companies in total, across India, that are legally allowed to give loans. All the companies that are legally approved and registered to give loans are listed in this PDF.
So, if you are planning to take a loan from any NBFC or ARC, you can check whether they are in this list or not and find out whether they are RBI-registered. Now, you might have a question: “The reason we came into this post is to learn how to take a loan on GPay, right?” Then why am I giving you so much information first? The reason is that taking a loan on GPay itself should only be a secondary or third option. First, go to a bank. If you don’t get it there, then go to NBFCs.
If you don’t get it there either, only then should you look at apps or applications like GPay or PhonePe to take a loan. It should be a final option, not something you take as a first priority. Because comparatively, the interest rates on banks versus these platforms are much higher on these platforms. Another thing is that the charges are also likely to be higher. And the requirements will vary according to them. So now, what is our question? Is GPay RBI-registered? That question itself is a very different kind of question.
The reason I say this is because Google Pay is a platform. It’s not just an application; it is a platform. When we say platform, Google Pay does not directly give personal loans from its own money. So Google Pay has partnered with two entities. If you see who they are: DMI Finance and Aditya Birla Finance. Since both of them are listed and RBI-registered, Google Pay, which has partnered with these two, provides loans to us through them.
GPay loan partners (DMI Finance & Aditya Birla Finance)
Now I think you’ve understood. So when we ask whether GPay is RBI-registered, since its partners are RBI-registered, you can freely take a personal loan here. But before that, note one important thing: only in case of emergencies, and that too as a third option. I asked at the bank and didn’t get it, asked there and didn’t get it, and asked here and didn’t get it—only then maybe you can come to this option.
Now you’ll learn step by step how to take a personal loan on Google Pay. Before that, why am I talking about a safer option what does “safe option” mean? Check whether it is RBI-registered or not. And why am I saying this should be a third or fourth priority, something you take only when nothing else is available? The reason is to stay as safe as possible and avoid getting cheated here and there with money.
When we think this carefully about safety, if you are the only earning person in your family, and if you have already thought about your family’s safety, then you will definitely have term insurance. If you haven’t thought about it, then you probably haven’t taken term insurance yet.
Because when it comes to family protection, if I am the only earning person and something happens to me in an emergency and I’m no longer there, emotionally, After Some time, the family may come to terms with the loss. But financially, where will the monthly income that I was providing all these days come from? Definitely, someone in the family will have to struggle. They will have to face a real roller coaster. That’s when term insurance becomes a huge support.
If you spend just ₹400 to ₹500 per month as a premium, based on your age and health condition, you get good coverage. Not only that, but you can also compare and choose the best among the most trusted insurance partners. If you buy this insurance online, you can get up to a 15% discount. So definitely buy term insurance. If you want this term insurance with the benefits I mentioned, there is a link in the description—do check it out. Even if you don’t buy it, at least check what level of coverage you get based on your eligibility and details. So term insurance is extremely important.
How to apply for a loan in Google Pay
Now come, let me show you step by step how to take a loan on GPay. First, open the Google Pay app. On that page itself, you’ll see an option called “Money.” Click on it, then tap on “Personal Loan.” That option will appear there itself. When you tap on Personal Loan, it shows that loans are available up to ₹10 lakh. Not only that, the loan tenure ranges from 6 months to 6 years.
And if you look at the interest rate, it starts from 9.99% and can go up to 20–30% interest. It’s very high. That’s why I said right at the beginning that you should keep this only as a last option. If you’re getting around 9% interest on Google Pay, that means your background, CIBIL score, and certain qualifications are extraordinary, and they may offer it to you.
But if your CIBIL score is that good, you can take a loan directly from a bank—that’s another option. But the important thing is that there is a high chance the interest can go up to 20–30%, citing various reasons. If the interest charged on a loan goes above 25%, it is advisable not to take it, because it’s not worth it. If you are going to pay such high interest and take a loan, think carefully about whether it is really necessary before deciding.
So now you know these details. Now get started. What are you going to do? How do you apply? They will definitely ask for your PAN number, so keep your PAN card ready. Next, keep your email ID and phone number ready—your active number and email ID. You’ll have to check the consent box. I always say this: whether it’s buying insurance or taking a loan, many of us skip reading the consent box.
Important things are hidden there. In the future, if any problem arises, they’ll say that you ticked, signed, and submitted it yourself. At that time, we won’t be able to say anything back. So read the terms and conditions, consent box, and application form clearly and thoroughly, understand them, and only if you’re okay with everything, click to continue.
Consent box & details required
Enter your full name. Always give your full name, because even small mistakes can cause errors, especially when matching with your PAN card. Enter your full name, your date of birth, gender, and PIN code. Enter your PAN card number again—this is where they will ask for it.
Then enter your employment details. Why do they ask for employment details? For personal loans, they always ask for income details and which company you work for. In fact, they also check whether that company is listed in their given options. So if you work in a good, big company, they will ask for the company name, your salary, and your complete residential address. Read everything, go through all the terms and conditions, and then submit.
After you submit all this, there’s one more thing I want to tell you. Look at their charges. For example, let’s say the loan you need is ₹1,25,000, with a tenure of 18 months. You’ll be paying ₹8,950 per month. If you look at who the lender is, it’s Aditya Birla Capital Limited. Now what happens is, there is something called a processing fee.
Whether it’s an NBFC or these platforms, when we choose a loan amount, there is an additional processing fee amount like ₹4,000 or ₹5,000. On Google Pay, the processing fee is ₹4,425. This is 3.54% of your loan amount. They charge up to about 3.5% of your loan amount as a processing fee. In banks, the processing fee is usually just around 1%. That’s why I say the first priority should be banks. Now do you understand? Right here itself, ₹4,000–₹5,000 is gone.
KYC process & final loan steps
So how much of the loan amount actually comes into your hand? From ₹125,000, you receive only ₹120,575. Now I think you understand. So this is the step-by-step process of taking a loan on Google Pay. After you review everything and submit it, there will be a final KYC step. There, they will ask for your Aadhaar card number and some details again. They may even ask for virtual verification. So this is the step through which you can obtain a loan on Google Pay.
And I’ll say this again: personal loans should be taken only in a complete emergency—when you’ve asked everyone, friends and family, there are no savings at home, and it’s truly an emergency. Only then go for a personal loan. And especially for these kinds of platforms and other platforms, think carefully, verify whether they are RBI-registered, and only after checking everything should you take a personal loan.
So in this post, I hope you’ve seen and understood step by step what you should check before taking a loan from a platform, how to find out whether it is RBI-registered or not, and How to get a personal loan on GPay (Google Pay). If you have any doubts or queries, definitely let me know in the comment section. If you liked this post, share it with many people, because there is a lot of information here that you should know before taking a loan. And I’ll meet you again in another interesting episode.