Finnable Scam or Legit? Honest Reviews and Complaints

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  • Post published:March 3, 2024
  • Post category:Reviews

These days, personal loan apps are a dime a dozen in India.

But today I want to take a close look at one app that’s been making waves lately – Finnable.

Branded as one of the fastest-growing fintech startups offering digital personal loans, Finnable claims to provide loans instantly with minimal paperwork.

Sounds good, right?

Well, not so fast. A quick look at reviews and you’ll find a ton of angry customers accusing Finnable of shady practices. There are claims of misleading interest rates, poor customer service, unauthorized debits from accounts, and more.

So is Finnable legit? Or is it a scam that should be avoided at all costs?

I decided to do a deep dive into Finnable to get to the bottom of this. Here’s everything I uncovered about this controversial loan app’s background, pros and cons, and whether or not it’s truly safe to use.

Let’s get started.

What is Finnable?

Finnable is an online platform and mobile app that provides personal loans to salaried professionals in India. It is operated by Finnable Technologies Pvt Ltd, a subsidiary of Finnable Credit Pvt Ltd which is a non-banking financial company (NBFC) registered with the Reserve Bank of India.

Founded in 2018, Finnable’s mission is to “revolutionize lending in India by providing digital loans instantly without any paperwork.”

The company has partnered with various NBFCs and banks like DMI Finance, Northern Arc Capital, Utkarsh Small Finance Bank, and more to offer personal loans ranging from ₹50,000 to ₹10 lakh. Loan tenures can be from 6 months to 5 years.

Finnable Scam

Key Features of the Finnable App:

  • 100% digital process with no branch visits required
  • Get a loan decision in 30 mins with minimal documentation
  • Flexible EMI options from 6-60 months
  • Loans disbursed in 2 hours after approval
  • Option to apply with a low credit score
  • No collateral or security deposit needed

So far, so good. Finnable does seem to deliver on its promise of an easy, fast, and convenient personal loan process through its digital platform.

But as I dug deeper, I uncovered some serious red flags and controversies surrounding this fintech startup that made me very skeptical about using their services.

The Shady Side of Finnable: Red Flags & Controversies

While Finnable paints itself as a customer-friendly loan provider, there’s a ton of smoke suggesting some seriously shady business practices under the hood.

Here are some of the biggest red flags I came across about Finnable:

  1. Widespread Accusations of Being a Scam on Public Forums

A quick Google search for “finnable scam” brings up dozens of consumer complaints and negative reviews accusing Finnable of scamming people.

Reviews describe experiences like:

  • Getting promised much lower interest rates, only for the approved loan to have sky-high rates
  • Unauthorized debit attempts and bounce charges from accounts
  • Insanely poor customer service with no proper channels to resolve issues
  • Threats and harassment from recovery agents for missed EMI payments

Many reviewers outright call Finnable a fraud and urge people to stay away from this app at all costs.

  1. Slapped With an FIR For Forgery and Cheating

In July 2022, an FIR was filed against two employees of Finnable on charges of forgery, cheating and criminal conspiracy by a Bangalore resident.

The complainant alleged that Finnable executives forged Aadhaar documents and disbursed over ₹9 lakh of unsanctioned loans into the bank accounts of the complainant and his family members without consent.

When the complainant refused to repay these unauthorized loans, he claims Finnable recovery agents threatened and harassed him.

Obviously, this is a very serious accusation indicating malpractice at Finnable beyond just poor customer service.

  1. No Physical Office or Contact Numbers

Another major red flag? Finnable doesn’t seem to have any physical office locations or customer support phone numbers listed anywhere!

Their website lists an address in Bengaluru, but social media posts suggest this is just a virtual office address without any actual operations happening there.

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Many customers have complained that the only way to contact Finnable is through email. And even then, responses are slow or don’t properly resolve issues.

For a financial services company that deals with loans, this lack of transparency and proper communication channels seems extremely sketchy.

  1. Finnable Employees Posting Desperate Pleas on Reddit

In a bizarre turn of events, several employees claiming to be from Finnable have taken to Reddit’s r/India subreddit to post lengthy defenses of the company amidst all the backlash.

These posts essentially beg the Reddit community to not believe the negative reviews and that Finnable is a legitimate company.

If they were truly a reputable lender, why would employees need to defend the company like this on Reddit? Something doesn’t smell right here.

  1. Aggressive Lending Targets & Underhanded Tactics Alleged

According to some former Finnable employees, the company pushed overly aggressive lending targets and penalized staff for rejecting too many loan applications.

There are also allegations that Finnable instructed staff to be deceptive about loan terms and documentation requirements just to get more disbursal numbers.

If true, that would explain why so many Finnable customers ended up blindsided by higher-than-expected interest rates and unfair practices.

  1. Recovery Agents Behaving Like Criminal Goons

When looking into Finnable, what disturbed me the most were the countless complaints about the abusive, threatening behavior of Finnable’s recovery agents.

Borrowers with missed payments report agents showing up at homes and workplaces to aggressively demand repayment, with no regard for privacy or decency.

Some have alleged that Finnable agents have threatened physical violence, insulted family members, and even extorted money through intimidation tactics more reminiscent of a criminal gang than a professional NBFC.

There have been accusations of savagery beyond what should ever be acceptable, even by the unfortunately harsh standards of loan recovery in India.

  1. Linkages to Dubious Chinese Funders

Perhaps most unsettling is the reported Chinese connection behind Finnable.

While incorporated in India, connections have been traced between Finnable and financiers in China that were previously banned by the Indian government for operating predatory lending apps.

There are allegations that Chinese handlers give instructions and targets to Finnable staff related to recovery and disbursement practices. If true, this could explain a lot of the company’s questionable behavior.

So with the potential influence of Chinese operators with a track record of unethical lending apps in India…well, it doesn’t bode well for Finnable.

Clearly, there are some very worrying smoke signals around Finnable that shouldn’t be ignored.

But is it truly a full-blown scam, or just an incompetent operation making poor business decisions while cutting corners?

Let’s look at some of the positives and try to make an objective assessment based on a balanced look at all the facts.

The Pros: Why Some Users Are Still Happy With Finnable

For all the controversies, Finnable does have some satisfied customers out there. Here are some of the positives cited about the company’s lending operations:

  1. Actually Providing Quick Loans to Underserved Segments

One credit Finnable does deserve is its willingness to approve loan applicants that more traditional NBFC’s or banks would reject. This includes those with low credit scores or working in the gig economy.

Several app reviews praise Finnable for disbursing loans instantly when other lenders turned them down. For someone in dire need of a personal loan, this easy access can be a godsend.

  1. Relatively Low Interest Rates for Some (At Least Initially)

While many slam Finnable for dishonest interest rate practices, some users report being charged APRs in the 16-19% range – reasonably low for personal loans.

These rates are for the “reducing balance” interest though, not flat rates. And it seems that subsequent loan top-ups are where Finnable really hikes the rates unethically.

But some customers did get decent loan terms for their initial borrowing.

  1. Fully Digital Process That’s Fast & Convenient

Those happy with Finnable routinely cite the speed and convenience of the entirely digital, paperless loan application and disbursal process.

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For customers who value expediency above all else, getting approved in under 30 minutes and having the money in 2 hours is a huge upside of Finnable versus more traditional lenders.

  1. Helps Fund Life’s Big-Ticket Expenses

Let’s not overlook the major benefits that quick-access personal loans can provide. Many users report taking Finnable loans for major events and expenses like:

  • Weddings
  • Medical emergencies
  • Home renovations
  • Vehicle loans
  • Travel
  • Debt consolidation

For those with limited options and sudden cash needs, Finnable has helped provide access to funds in a timely manner.

  1. An Established, RBI-Approved Operation With Real Financed Loans

While controversial, Finnable is no fly-by-night operation. It was founded in 2018 and has disbursed over a billion rupees in loans so far.

It’s worth noting that their loans are legitimately financed by real NBFC partners registered and regulated by the RBI, not some shadow lending scheme.

So despite the complaints and bad press, there is at least an actual financial services business operating under India’s legal framework here.

All that said, the red flags surrounding Finnable’s operations remain quite ominous overall.

Is Finnable Worth the Risk? My Final Verdict

Finnable has proven itself a disruptive force in democratizing access to credit and forced incumbents to innovate.

But it seems they prioritized blistering growth over responsible lending practices and customer experience. The pattern of allegations and negative reviews is too damning to ignore.

While Finnable’s lending model may have initially attracted underserved borrowers due to easy approval processes, the damage to Finnable’s reputation from unethical practices may have jeopardized its long-term viability.

Remember, your all-important CIBIL score and financial well-being is on the line when dealing with any lender. With so many red flags around Finnable, pursuing a personal loan through their platform seems like an unnecessary risk:

✘ High probability of getting misled on rates and terms after approval

✘ Recovery agents with a reputation for disturbing harassment

✘ Poor customer service with no proper channels to resolve grievances

✘ Linkages to unethical Chinese lending apps under the scanner

✘ Regulatory uncertainty and legal troubles clouding the operation

My verdict: Despite the convenience of Finnable’s platform, the levels of apparent shadiness, deception, and mistreatment of customers make this a lending option I would not recommend at this time.

There are enough horror stories from Finnable borrowers to disqualify the app for me. The pros simply don’t outweigh the many risks present here.

That said, the final choice is up to you as an informed consumer. Just be very cautious if you do proceed with Finnable and have a contingency plan ready if things go awry.

As with anything involving easy money, the old adage remains true – if something seems too good to be true, it probably is.

For hassle-free lending minus the Finnable baggage, you may want to explore some of the more reputed and transparent digital lenders out there serving the Indian market respectfully.

Top 5 Safer Alternatives to Finnable For Personal Loans

While Finnable is best avoided for now, that still leaves us with a major question:

What other options are there for people looking for quick personal loans online in India?

Well, the good news is that there are a number of other reputable digital lending platforms out there that offer easy process, competitive rates and (hopefully) more ethical business practices than Finnable.

Here are five better alternatives to Finnable that I would suggest checking out first:

  1. InCred

One of the fastest-growing and most innovative fintech NBFCs, Mumbai-based InCred has disbursed over ₹6,000 crores in loans so far through its sleek online platform.

Key Features:

  • Personal loans from ₹1 lakh to ₹35 lakh with flexible repayment options
  • Competitive interest rates starting as low as 11.99%
  • Quick approval in just 24 hours through video KYC
  • Ability to check personal loan eligibility instantly for free
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With a solid reputation and backing from investors like the Government of Singapore and Alpha Wave Incubation Fund, InCred is one of the safest and most professional digital lending options out there.

  1. CASHe

Operating since 2016, CASHe has already provided over ₹3,300 crores in credit to millions of Indians through its AI-powered fintech lending platform.

Key Features:

  • Personal loans from ₹10,000 to ₹4 lakh disbursed in less than 15 minutes
  • Interest rates start from 1.25% per month
  • Paperless application process with Aadhaar and PAN
  • Flexible repayment options from 15 days to 3 years

CASHe stands out for its innovative lending models and products beyond just personal loans, including buy now pay later options, salary advances and more.

  1. EarlySalary

EarlySalary is a leader in the cash advance space, providing timely liquidity solutions to over 500,000 customers so far.

Key Features:

  • Personal loans of up to ₹5 lakh available
  • Salary advances starting ₹8,000 disbursed in 10 minutes
  • Interest rates starting from 2.5% per month for loans
  • Fully digital process with no collateral or CIBIL check needed

EarlySalary also offers credit lines, buy now pay later, and other innovative credit solutions all through a user-friendly mobile app experience.

  1. MoneyTap

With over 15 lakh customers already, MoneyTap is one of India’s largest app-based credit lines offering personal loans and more.

Key Features:

  • Personal loans from ₹3,000 to ₹5 lakh at low-interest rates
  • Huge credit line limits up to ₹5 lakh available
  • Quick approval and paperless loan process
  • Additional services like credit reports, insurance and financial tracking tools

MoneyTap aims to provide a comprehensive suite of financial solutions beyond lending through integrated money management offerings on its app.

  1. KreditBee

KreditBee is a Bangalore-based fintech with a mission to provide credit access to underserved Indian borrowers.

Key Features:

  • Personal loans from ₹5,000 to ₹2 lakh, with credit lines up to ₹10 lakh
  • Competitive interest rates from 2% per month for existing customers
  • Fully digital lending via app with video KYC and e-NACH mandate
  • Flexible repayment options from 3 to 15 months

A fresh Series D funding of $100 million underscores the backing and confidence KreditBee enjoys as an emerging fintech player in India.

Wrapping Up

At the end of the day, we should celebrate fintech innovations that are making the borrowing experience quicker, simpler and more inclusive for all Indians.

At the same time, lenders like Finnable are a stark reminder of the Wild West phase that digital lending is currently in. Higher convenience cannot come at the cost of ethical lending practices.

As the Indian fintech industry matures and consolidates, responsible players with robust governance will emerge stronger and crowd out shadier fringe operators like Finnable.

For now, borrowers must thoroughly scrutinize these fintech lending apps beyond their marketing promises. Comprehensive customer reviews, regulatory oversight records, and history of business practices should all be cross-referenced.

Only the lending platforms operating with complete transparency and focused on a superior end-to-end experience will win the trust – and loyalty – of Indian borrowers long-term.

The digital lending revolution has just begun, and I believe fintechs who uphold ethical values and consumer interests will be the ultimate winners leading India into this brave new world.

What are your thoughts on Finnable and the overall state of India’s digital lending space? I would love to hear your perspectives in the comments below!

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