How to Check If a Digital Lender Is Licensed
Central banks and regulators in many countries publish lists of licensed lenders. How to check a loan app before borrowing, with examples from Kenya, the UK, Nigeria and elsewhere.
A professional app and good reviews do not make a lender legitimate. In many countries, digital lenders must be licensed or registered, and regulators publish the lists. Checking takes a few minutes and avoids most loan app scams.
Where to check
| Country | Where to look |
|---|---|
| Kenya | The Central Bank of Kenya's Directory of Digital Credit Providers. |
| United Kingdom | The FCA's Financial Services Register. |
| Nigeria | The Federal Competition and Consumer Protection Commission publishes information on registered digital lenders. |
| India | The Reserve Bank of India publishes information about regulated lenders and the apps they use. |
| Elsewhere | Your central bank, financial regulator or consumer protection authority. |
How to check properly
- Find the exact company name behind the app, usually in the app store listing or terms.
- Search that name on your regulator's list, not a list shared by the app.
- Check the contact details match the official record.
- Search for warnings about the app or company.
Clone lenders exist. Scammers copy the names of licensed firms. Contact the lender through details on the regulator's record, not the app or message.
Next: reading a digital loan offer. For more, see loan app scams and unlicensed lenders.
Frequently asked questions
Why does a licence matter?
Licensed lenders must follow rules on fees, disclosure, data use and debt collection, and you have somewhere to complain.
The app is in the official app store. Isn't that enough?
No. App stores are not financial regulators. Check the lender's name against your regulator's list.
What if my country has no public list?
Contact the central bank or consumer protection authority, and check the lender's company registration and physical address.
Sources
- Directory of Digital Credit Providers, Central Bank of Kenya
- Financial Services Register, UK Financial Conduct Authority
- Federal Competition and Consumer Protection Commission, FCCPC (Nigeria)
- What To Know About Advance-Fee Loans, US Federal Trade Commission
