MobiKwik has received an RBI licence to operate as an NBFC, according to reporting by CNBC TV18. The company also reportedly aims to give out loans worth ₹5,000 crore.
For you, this means one more regulated lender may soon offer credit in its app. Nothing changes for your money today. Still, it's smart to know how such lenders work before you borrow.
Key takeaways
- MobiKwik has reportedly got an RBI licence to work as an NBFC.
- The company is said to be targeting ₹5,000 crore in loans.
- A target isn't a promise. Rates and loan types haven't been confirmed in the report.
- Always compare the full cost of a loan before you say yes.
- Check that any lender is registered with RBI.
What is an NBFC and how does it work?
NBFC stands for non-banking financial company. It lends money, much like a bank does. But it can't take regular savings deposits the way a bank can.
RBI sets the rules for NBFCs. These rules cover how they lend, what they can charge and how they collect dues. A licence means the company has met RBI's basic conditions.
MobiKwik is known as a digital payments company. Apps like this often connect users with partner lenders. Holding its own licence may change that setup. The report we have doesn't say how.
What changes for borrowers?
Right now, not much. The licence is a first step. Loan products, interest rates and fees haven't been shared in the report.
What we can do is show how rates change your cost. Say you borrow ₹50,000 for 12 months. EMI means equated monthly instalment, the fixed amount you pay each month. The table below uses sample rates only. These are not MobiKwik's rates.
| Yearly interest rate | Monthly EMI | Total interest paid |
|---|---|---|
| 14% | ₹4,489 | ₹3,868 |
| 18% | ₹4,584 | ₹5,008 |
| 24% | ₹4,728 | ₹6,736 |
| 30% | ₹4,874 | ₹8,488 |
See the gap? Going from 14% to 30% adds about ₹4,600 in interest on the same loan. You can test your own numbers with our EMI calculators.
Who is affected?
The people most likely to care are users of the MobiKwik app. Many of them are young and new to credit. Some have a thin credit history, so banks may say no to them.
Salaried people who need small loans may also look at it. So might small shop owners who need quick cash. If you're in this group, read our instant loan guides first.
Existing savers and bank customers see no direct change. Your deposits and loans stay exactly as they are.
What should you do now?
You don't need to act today. But if you plan to borrow, use this short checklist.
- Check that the lender is on RBI's list of registered NBFCs.
- Ask for the yearly interest rate, not just the monthly figure.
- Ask about processing fees, late fees and prepayment charges.
- Work out the EMI and keep it under about 40% of your monthly income.
- Read the loan terms fully before you tap accept.
Not sure if you qualify? Try our eligibility check. Also see our personal loan guides to compare options.
Frequently asked questions
Does an NBFC licence mean MobiKwik loans are now available?
Not necessarily. A licence gives permission to lend. The company decides when and how to launch loans, and the report doesn't give dates.
Is an NBFC loan safe?
A registered NBFC follows RBI rules. That adds a layer of safety. You should still check the rate, the fees and the terms yourself.
How can I check if a lender is registered with RBI?
RBI publishes a list of registered NBFCs on its website. Search for the company name there before you borrow. If it's missing, stay away.
BankCreds analysis
This news is less urgent than it sounds. A licence is a permission slip. It isn't a loan offer, and it doesn't lower your interest rate.
The ₹5,000 crore figure is a target. Targets can take years to reach, and they can shrink. Don't plan your money around it.
Who gains and who doesn't
Think of a gig worker who needs ₹30,000 for a bike repair. A new lender may approve this person faster than a bank would. But speed often comes with a higher rate. At 24% a year, the cost of a one year loan is about ₹4,050 in interest. A bank loan at 14% would cost about ₹2,320.
So the licence helps people who are turned away elsewhere. If your bank will lend to you, it's usually cheaper. Compare first, and borrow only what you can repay.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- CNBC TV18 — originating report https://www.cnbctv18.com/market/mobikwik-gets-rbi-licence-to-operate-as-nbfc-targets-rs5000-crore-in-loans-20028986.htm/amp
- Reserve Bank of India — RBI regulates and licenses NBFCs https://www.rbi.org.in/
- RBI list of registered NBFCs — Where you can check that a lender is registered https://www.rbi.org.in/Scripts/BS_NBFCList.aspx
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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