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Daybreak · Wednesday · 28 min

How some RBI-licensed NBFCs charge 600% interest and stay legal

If you Google "paisa de do", dozens of near-identical websites appear. Some, offering cash in 15 minutes. The interest rate on some of these loans is 600% per annum and the lenders are RBI-licensed. One borrower started with a Rs 75,000 loan. Within five months, he was paying Rs 6 lakh a month across eight different loan apps just to stay afloat. The Ken's Mutasim Khan found 25 such NBFCs, some reporting revenue growth of 3,000 times in a single year. In 2024, the RBI flagged 45% annual interest as predatory. These lenders charge more than ten times that. And nobody has stopped them yet. Tune in. Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

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If you Google "paisa de do", dozens of near-identical websites appear. Some, offering cash in 15 minutes. The interest rate on some of these loans is 600% per annum and the lenders are RBI-licensed.

One borrower started with a Rs 75,000 loan. Within five months, he was paying Rs 6 lakh a month across eight different loan apps just to stay afloat.

The Ken's Mutasim Khan found 25 such NBFCs, some reporting revenue growth of 3,000 times in a single year. In 2024, the RBI flagged 45% annual interest as predatory. These lenders charge more than ten times that. And nobody has stopped them yet.

Tune in.

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

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