How secure is my personal information during the loan process?

Your personal information is treated with high importance and care during the personal loan process in India, especially with the introduction of stricter data protection regulations in 2025. Lenders—whether banks or non-banking financial companies—must comply with RBI guidelines and the Digital Personal Data Protection Act, 2023, which set clear standards for data privacy and security.

Here’s how your data is protected:

• Encryption and Secure Storage: Lenders use advanced encryption to safeguard your data during transmission and store it in secure data centres protected by firewalls and regular security checks.
• Consent-Based Collection: Your personal and financial details are collected only after you give explicit consent. Lenders must clearly inform you about what data is collected, why it’s needed, where it will be stored, and who will have access.
• Limited Data Access: Only essential information—such as your name, address, and contact details—is stored. Sensitive data like biometrics is not collected unless legally required.
• Transparency and Redressal: Lenders must publish privacy policies on their websites and provide a grievance redressal mechanism for data privacy concerns.
• No Unauthorised Sharing: Data cannot be shared with third parties without your permission and all storage must be within India.

To protect yourself always apply through official channels, read privacy notices carefully, and never share sensitive details with unverified sources. If you suspect misuse, report it immediately to the lender and regulatory authorities.