finpeel Answers · India · updated 2026-08-14
A fintech cannot simply carry on regulated lending as its principal financial business without fitting an authorised lender structure such as a bank or RBI-regulated NBFC. Whether a particular company requires NBFC registration depends on the nature and scale of its financial business and applicable exemptions.
Many lending apps therefore operate as Lending Service Providers to regulated lenders rather than becoming the lender of record themselves.
Do not use the technology platform to obscure who legally advances the funds, bears credit risk and records the loan on its balance sheet.
Regulator: Reserve Bank of India (RBI)
Primary sources: RBI — FAQs on NBFCs
Directional — not legal advice. Verify with the regulator before committing.
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