Is the Niro loan app RBI Approved?

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Is the Niro loan app RBI Approved?

I am writing to inquire about the Niro Loan App and its approval status with the Reserve Bank of India (RBI). Your collective insights and expertise in financial matters make this community a valuable resource.

Can anyone within the community confirm whether Niro Loan App is approved by the RBI? Understanding the regulatory standing of financial platforms is essential for making informed decisions, and your experiences and knowledge could provide valuable clarity.

If any members have recent information or experiences related to Niro Loan App’s approval by the RBI, I would greatly appreciate your input. Thank you for your time and expertise. The shared knowledge within this forum has proven to be an invaluable resource, and I look forward to your insights on this matter.

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Answer ( 1 )

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    • 1. Niro Loan App: Niro is not an RBI-approved NBFC (Non-Banking Financial Company) or bank. It functions as a platform connecting borrowers with lending partners.

    • 2. Loan Disbursement: Niro does not directly disburse loans. Instead, it facilitates connections between borrowers and lending partners who are responsible for approving and providing the loans.

    • 3. RBI Approval: Niro’s lack of RBI approval is due to its intermediary role. The actual approval and provision of loans come from the lending partners, which are regulated by the RBI.

    • 4. Lending Partners: Niro collaborates with “select lending institutions,” but specific names of these partners are not publicly disclosed. Borrowers need to identify and research the lending partner for RBI registration details.

    • 5. Pre-Approved Process: Niro employs a “pre-approved” process, where some users receive invitations for loan offers. However, pre-approvals do not guarantee final loan approval, as it is subject to the lending partner’s assessment.

    • 6. Final Approval by Lending Partner: The lending partner plays a crucial role in determining loan approval. Niro’s involvement is primarily in the initial stages, and the lending partner takes over for the final decision.

    • 7. Interest Rates and Terms: The interest rates and terms of the loan are set by the lending partner, not Niro. Borrowers should review and understand the specific terms provided by the lending institution.

    • 8. Responsible Lending Practices: Niro claims to follow responsible lending practices, but it is important to note that these practices are voluntary. Niro is not directly bound by the RBI’s Fair Practices Code for NBFCs.

    • 9. Voluntary Responsible Practices: Niro’s commitment to responsible lending practices is voluntary, indicating a commitment to ethical standards even if not mandated by regulatory authorities.

    • 10. Due Diligence by Borrowers: Borrowers should conduct thorough due diligence not only on Niro but also on the lending partner to ensure compliance with regulatory standards and to make informed decisions about loan agreements.

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