By Lal Singh True Balance began around the mid-2010s as a fintech app aiming to provide digital-wallet, UPI, and personal-loan services in India. It bills itself as a “wallet + loan + payment” platform for everyday users who need quick recharges, bill payments, or short-term credit. Because it deals with personal data, money transfers, and loans — it’s reasonable to ask: “Is True Balance actually safe to use?”
The answer is, True Balance is a legitimate, regulated platform but “safe” only up to a point. It works well for limited use (small payments, short loans) if you stay alert. If you depend heavily on it or borrow recklessly, the risks rise significantly.
What Works — Strengths & Reasons People Use True Balance
1. Operates Through Regulated Entities (Wallet + NBFC Partners)
True Balance claims its wallet operations are backed by an RBI-authorised Prepaid Payment Instrument (PPI) provider. For loans, it does not lend directly — instead, it ties up with RBI-licensed NBFCs for disbursement. That means you’re not dealing with a fly-by-night “loan-app,” but with regulated financial institutions. That regulatory structure is the basic first pillar of legitimacy.
2. Convenience — Digital Wallet + UPI + Loan in One App
True Balance offers a combined suite:
- A prepaid-wallet / UPI interface for recharges, bill payments, small fund transfers.
- Option to apply for small personal loans (often ₹1,000–₹2 lakh, sometimes up to ₹5 lakh) — suitable for short-term needs or emergencies.
- Fully digital — KYC, application, disbursement are handled online.
For people who don’t have easy access to traditional banking — freelancers, gig-workers, salaried employees needing quick liquidity — this simplicity and speed can be helpful.
3. Transparency (When You Check Carefully)
True Balance publishes its loan-range, approximate interest rates, processing fees, and basic terms. Some users have reported that loan disbursement and early repayment worked as advertised. So if you read the fine print and understand what you’re signing up for — transparency exists.
What to Watch Out — Risks, Complaints & Limitations
1. Very High Interest Rates and Fees Compared to Traditional Loans
Because loans from True Balance (via NBFC partners) are unsecured and quick-disbursal, interest rates and APRs are significantly higher than typical bank loans. True Balance itself notes APRs ranging from ~28.8% to 86% depending on risk profile. That’s not a small number — it means even modest loans can become expensive if repayment is delayed or extended.
If you borrow casually or without firm repayment capacity, you risk ending up paying far more than you borrow. One user commented that after fees and charges, actual disbursement was much lower than initial loan amount.
2. Customer Feedback Is Mixed — Complaints of Hidden Charges, Poor Support, Debt Pressure
Public-review platforms show genuine grievances: some users cite “hidden charges,” “confusing terms,” or heavy deductions at the time of loan disbursement. Others claim that even after repayment, they faced repeated calls offering new loans — which can feel like harassment. This is a common risk across many quick-loan apps: the app might be legally compliant, but user experience and customer support may be weak.
3. Risk of Over-Borrowing & Debt Spiral for Vulnerable Borrowers
Because the app makes borrowing very easy — digital KYC, minimal paperwork, quick disbursal — there’s temptation to borrow even for non-essential spending. If income is not stable or repayment is delayed, high interest and repeated loans can trap a borrower. This is particularly dangerous for young, new-to-credit, or financially unstable users. Several articles analyzing True Balance call attention to exactly this risk.
4. Loan Terms Often Short, Not Ideal for Long-Term Borrowing or Large Expenses
True Balance is best suited for short-term liquidity — small personal loans, emergency cash, quick needs. It is not ideal for long-term financing (home, education, large business capital), because of high interest and short-tenure structure. If you misuse it for large or recurring expenses, financial load can become burdensome.
5. Data Privacy & Digital-Wallet Risks — As With Any App
Using True Balance means sharing personal data, KYC documents, bank details, and allowing access to SMS/contacts — for loan verification or wallet functioning.
If you’re not careful (weak PIN, lost phone, sharing OTPs), misuse of data or unauthorized transactions remain a risk. While True Balance claims compliance with security standards, the ultimate safety depends heavily on user behaviour and digital hygiene.
When True Balance Is a Reasonable Option — And How to Use It Safely
True Balance can work — in a controlled, limited way — if you:
- Need short-term funds urgently (emergency, repair, unexpected expense)
- Borrow small amounts, only what you actually need
- Plan to repay quickly — avoid extending tenures needlessly
- Read all terms carefully (interest rate, processing fee, EMI schedule) before accepting
- Do not treat it as a long-term credit line or savings — use it as a stopgap
- Maintain digital security hygiene — secure phone, avoid suspicious links, never share OTP/ PIN
In these circumstances, True Balance can be a legitimate, helpful tool for occasional short-term credit.
When You Should Be Very Cautious or Avoid Using True Balance
You should avoid or be highly cautious if you:
- Have unstable or uncertain income — risk of default high
- Tend to overspend or lack budgeting discipline
- Expect to use it for large, long-term financial needs (home, business, education) — high interest makes it expensive
- Feel pressured by calls or marketing for repeat loans
- Are unsure about repayment capacity
In those cases, trying to rely heavily on instant-loan apps like True Balance can be risky, even if the app itself is “legit.”
Final Verdict
True Balance is not a scam. It’s a lawful fintech platform, using regulated NBFC partners for lending, working under payment-wallet as per regulations, and providing a digital-first service that has helped many borrowers.
However, legitimacy doesn’t guarantee comfort. The combination of high interest rates, potential hidden fees, mixed customer-service feedback, and temptation to borrow often makes it a high-risk tool for long-term or repeated use.