RBI Compliance & Regulatory Framework
Biddaro is India’s construction loan marketplace. We connect borrowers with verified, RBI-registered, and NBFC-compliant lenders. This page explains our regulatory framework, lender verification process, and the protections available to every borrower on our platform.
Biddaro’s Role — Loan Service Provider (LSP)
Biddaro operates as a Loan Service Provider (LSP) and Digital Lending Platform as defined under the Reserve Bank of India’s Digital Lending Guidelines (RBI/2022-23/111, September 2022). We do not directly lend money. Instead, we act as a technology intermediary that connects borrowers with verified, regulated financial entities — including Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) registered with the RBI, and Housing Finance Companies (HFCs) registered with the National Housing Bank (NHB).
What Biddaro Does
- Collects loan applications from borrowers
- Verifies basic KYC and income documentation
- Matches applications to suitable regulated lenders
- Facilitates the loan sanction and documentation process
- Provides post-disbursement support and communication
What Biddaro Does NOT Do
- Directly disburse or lend funds
- Hold deposits or accept investments
- Guarantee loan approval or interest rates
- Make credit decisions independently
- Charge any hidden fees beyond the disclosed ₹100/month subscription
Our Lender Verification Process
Every lender in Biddaro’s network must pass a multi-step verification process before being allowed to receive borrower applications:
Regulatory Registration Check
We verify the lender's registration with the Reserve Bank of India (for NBFCs) or the National Housing Bank (for HFCs) through the official RBI/NHB CERSAI databases. Only regulated entities are onboarded.
RBI Fair Practices Code Adherence
Lenders must confirm compliance with the RBI's Fair Practices Code for lenders — including transparent interest rate disclosure, no prepayment charges on floating rate loans, and proper grievance redressal mechanisms.
KYC & AML Compliance
Lenders must have a documented KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance framework certified by their compliance officer, as required by PMLA 2002 and RBI KYC Master Directions 2016.
Digital Lending Guidelines Compliance
All lenders confirm compliance with RBI's Digital Lending Guidelines 2022 — including disbursement directly to borrower accounts (no pooling in LSP accounts), Key Fact Statement (KFS) provision, and Annual Percentage Rate (APR) disclosure.
Grievance Redressal
Lenders must have a dedicated Nodal Officer and a public-facing grievance redressal mechanism accessible to borrowers at all times, as required by RBI guidelines.
Your Rights as a Borrower
Under RBI’s Digital Lending Guidelines 2022 and the Fair Practices Code, every borrower in India has the following rights:
Key Fact Statement (KFS)
Before signing any loan agreement, you are entitled to receive a Key Fact Statement showing all fees, charges, APR, and terms in a standardised format.
No Prepayment Penalty
For floating rate loans (the most common type in India), you have the right to prepay or foreclose the loan at any time without any penalty charges, as mandated by RBI.
Direct Disbursement
All loan amounts must be disbursed directly to your bank account — never to the LSP or intermediary. You have the right to refuse if this is not followed.
Transparent APR
You have the right to know the Annual Percentage Rate (APR) — the true cost of your loan including all fees and charges, not just the quoted interest rate.
Grievance Redressal
Every regulated lender must have a Nodal Officer. If your grievance is not resolved in 30 days, you can escalate to the RBI Banking Ombudsman at cms.rbi.org.in.
Data Privacy
Lenders can only access data on your device with your explicit consent. Data collection must be purpose-limited and disclosed upfront per RBI's Digital Lending Guidelines.
Data Security & Payment Security
Razorpay-Secured Payments
All subscription payments on Biddaro are processed through Razorpay — a PCI-DSS Level 1 certified payment gateway licensed by the Reserve Bank of India under the Payment and Settlement Systems Act 2007. Card details and banking credentials are never stored on Biddaro’s servers.
SSL/TLS Encryption
All data transmitted through biddaro.com is encrypted using TLS 1.3 (the industry’s highest standard). Your personal and financial information is encrypted in transit and at rest.
KYC Data Handling
KYC documents (Aadhaar, PAN) collected during loan applications are shared only with the matched lender for the purpose of loan processing. They are never sold or shared with third parties for marketing purposes. This complies with the RBI’s KYC Master Directions 2016 (updated).
Grievance Redressal
If you have a complaint about a loan or our service:
- Contact Biddaro customer support at biddaro.com/contact — we resolve most issues within 24 hours.
- If unresolved within 7 days, contact the lender’s Nodal Officer directly (details provided in your loan sanction letter).
- If unresolved within 30 days, escalate to the RBI Banking Ombudsman at cms.rbi.org.in or call 14448.
Biddaro’s internal grievance officer can be reached at legal@biddaro.com. We aim to acknowledge all complaints within 24 hours and resolve them within 7 working days.
Important Disclaimer
Biddaro is a technology platform and loan marketplace. We are not a bank, NBFC, or financial institution. We do not provide any investment advice, and nothing on this platform constitutes investment advice. Loan approval decisions are made solely by the lending institution and are subject to their internal credit policies, KYC verification, and applicable RBI/NHB regulations. Interest rates and loan amounts displayed are indicative and may vary based on your credit profile and lender’s assessment. Biddaro charges a ₹100/month subscription fee for its loan matching and application management service, which is separate from and in addition to any fees charged by the lending institution. This service fee is disclosed upfront and is non-refundable once the loan application is submitted to a lender.
Apply with Confidence
Biddaro connects you only with verified, RBI-compliant lenders. Secured by Razorpay.
Apply for a Loan — ₹100/month