DigiCredit Loan Interest Rate: What You Actually Pay

Before you apply for a DigiCredit loan, understand what the 3% per month figure costs in annual terms. DigiCredit is a Digital Lending App that doesn't lend directly. The actual lender is Khosya Finlease Private Limited, an RBI-registered NBFC. Your DigiCredit loan interest rate depends on your credit score and income. This guide breaks down the real cost so you can decide if it fits your needs.

Key Takeaways

DigiCredit advertises 3% per month, which converts to 36% APR on a reducing balance.
The processing fee is up to 10% of the loan amount plus 18% GST, making a Rs 10,000 loan cost Rs 1,180 in fees.
Your actual rate depends on your credit score and Khosya Finlease's check.
Loan amounts range from Rs 1,000 to Rs 75,000 with payback periods from 62 days to 12 months.
DigiCredit has a 4.5-star rating on Google Play, but recent reviews describe disbursement failures.
Khosya Finlease is RBI-registered, making your borrowed funds legally protected.

What does the DigiCredit loan interest rate actually mean?

DigiCredit's website states 3% per month onwards. Google Play Store lists a maximum APR of 36% per annum. These describe the same ceiling in different ways. The 3% monthly rate compounds over your tenure on a reducing balance. This reaches 36% APR. It's not the same as 3% per month flat for 12 months.

The advertised 3% is the floor, not guaranteed. When you apply, Khosya Finlease may offer you a higher rate based on your credit profile. Your final DigiCredit loan interest rate gets locked before you accept. You'll see it in your Key Fact Statement.

Your monthly rate depends on how much you borrow and how long you take to repay. Loan amounts range from Rs 1,000 to Rs 75,000. Payback periods range from 62 days to 12 months. Shorter tenures reduce total interest paid. But the processing fee stays fixed. This makes very short loans more costly.

How much will you really pay in total?

This is where many borrowers get surprised. The monthly rate is just part of your cost. The processing fee runs up to 10% of the loan amount plus 18% GST on that fee.

Real example: Rs 10,000 loan over 120 days

Loan amount: Rs 10,000
Processing fee: Rs 1,000 (10% of Rs 10,000)
GST on fee: Rs 180 (18% of Rs 1,000)
Total fee upfront: Rs 1,180
Total repayable amount: Rs 11,180

On Rs 10,000 over 120 days at maximum 36% APR, your total cost is Rs 11,180. The rate plus processing fee means you're paying 11.8% of the loan amount upfront.

Your actual processing fee may be lower if you're rated lower risk. But 10% is the published maximum. The fee comes out of your disbursement, not paid separately.

Who can qualify and what affects your DigiCredit loan interest rate?

Eligibility is clear. You must be an Indian resident, salaried, aged 21 to 55, and complete basic KYC. You'll need your PAN card and a valid bank account. Self-employed borrowers typically don't qualify.

Your final rate depends on three things: your CIBIL score, monthly income, and Khosya Finlease's risk model. Strong credit history and stable income get lower rates and higher approved amounts. Lower credit or modest income means smaller amounts at higher rates.

This is why comparing matters. One NBFC may offer 3% per month while another offers 2.5%. Over a 120-day loan, that difference could save you Rs 100-200. On our site, you can compare offers from RBI approved loan apps and see which gives the best rate for your profile.

Is this really RBI approved?

DigiCredit itself is not RBI-registered as a direct lender. DigiCredit is a Digital Lending App. It's a tech platform that handles the app and loan flow. Khosya Finlease Private Limited is the actual lender. It's an RBI-registered NBFC. When you borrow through DigiCredit, your legal contract is with Khosya Finlease, not the app.

This DLA-NBFC model follows RBI digital lending guidelines from 2024. It means you have consumer protections. If Khosya Finlease breaks RBI rules, you can file a complaint with the RBI Integrated Ombudsman Scheme.

Verify Khosya Finlease yourself. Go to rbi.org.in and search the NBFC list. If you see it with a valid Certificate of Registration number, the lender is real.

Is a DigiCredit loan safe?

DigiCredit has a 4.5-star rating on Google Play with over 1 lakh downloads. However, recent reviews describe loans marked as "disbursed" while funds didn't arrive. If this occurs, keep your loan ID and transaction receipt. Email support@digicredit.in with both. Include your registered mobile number. If support takes too long, file a complaint with the RBI at sachet.rbi.org.in.

Frequently Asked Questions

How is the monthly rate different from APR?

The monthly rate compounds over your tenure. A 3% monthly rate on a reducing balance doesn't equal 36% flat annually. Always compare using APR when comparing loans across different lenders.

Can I prepay my loan early?

Yes, without penalty. RBI rules forbid prepayment fees on personal loans. If DigiCredit charges one, that breaks RBI guidelines.

What is Khosya Finlease?

Khosya Finlease Private Limited is the RBI-registered NBFC that lends through DigiCredit. They approve your application, set your rate, disburse funds, and collect repayments. You have a legal contract with them.

Does this report to credit bureaus?

Yes, monthly to CIBIL, Equifax, and Experian. Timely payments build your credit score. Missed payments hurt it.

What if my loan shows disbursed but funds didn't arrive?

Email support@digicredit.in with your loan ID and registered mobile number. If unresolved in 5-7 days, file a complaint with the RBI at ombudsman@rbi.org.in. The RBI usually resolves complaints within 90 days at no cost.

What documents do I need?

Your PAN card for KYC and a valid bank account number. No salary slips or property documents needed for this short-term product.

How fast is the disbursement?

DigiCredit promises 100% digital processing. Approvals typically come within hours if KYC verifies immediately. Disbursement usually happens within 24 hours of approval.

What if I can't repay on time?

Contact support@digicredit.in right away. Late payments incur penalties per your agreement and hurt your credit score. Early contact improves your chances of getting a payment extension.

Compare before you apply

Your monthly rate is just one factor. Different lenders weight credit score, income, and risk in different ways. What one lender offers you may differ from another. Compare with other RBI approved loan apps on our site to find the best rate for your profile. The difference between a good rate and a bad rate could save hundreds of rupees.

Before applying for any instant loan, verify the lending partner is on the official RBI NBFC list. Read the Key Fact Statement carefully. Compare offers from multiple lenders and pick the one that fits your budget best.