The concept of fast loans is not without flaws. App-based loans have already cost the lives of six people who were victims of lenders' harsh collection efforts, emphasising the importance of caution. Most money lending applications don't have a website and are simply available on Google Play, with no information or licencing regarding the company. In most situations, the only information accessible is an email address and a phone number.
Salary Advance Loans and Instant Personal Loans are the two types of loans available on such app-based marketplaces. Because of the frequent loan frauds, Google Play Store does not allow apps that offer loans with terms of less than 60 days. Many of them were withdrawn from the Play Store due to policy violations, but they have reappeared under new identities.
Modus operandi
Step 1: They want access to pictures, phone books, and location services before installing the programme.
Step 2: The customer must supply a photo ID, an Aadhaar number, and a selfie/photo taken with the registered mobile phone.
Step 3: Following the completion of electronic authentication, the loan is approved (Third-party authentication for Aadhaar with unregistered NBFC lenders is illegal)
Step 4: Loans ranging from Rs 500 to Rs 50,000 are approved promptly, with interest removed. (For a loan of Rs 2,500, a victim was given Rs 1,600 and told to pay the remaining Rs 2,500 in one week.)
Step 5: If the customer does not pay back the loan on time, the lender will use aggressive collection measures, such as:
Call the customer's contacts from the address book and abuse them.
They allegedly call at all hours of the day and night, making up to 100 calls per day from various numbers.
They even add the victims' contacts to Adult WhatsApp groups and send the victims' modified photographs and videos to their relatives.
Fake FIRs/lawsuits should be sent.
Threaten by claiming that your CIBIL score will be zero (you may never get a loan in a future)
Female victims are requested to give naked photos in exchange for a loan waiver, and the photos are later utilised for blackmail and debt collection.
Then pressurise the victim to repay the money in five minutes, even if the payback is delayed for a day, and they offer another loan to cover the present loan. According to reports, a victim had to take out over 25 loans from various rapid loan apps to pay off her debts.
Warning signs
There is no need to check your credit: They don't look at Experian or CIBIL credit scores, instead focusing on personal information.
The lender is not a government-approved lender: Lenders must register with the RBI as an authorised NBFC lender before they may start lending.
The lack of a physical address: The lender does not disclose any contact information or a physical address.
Payments in advance: Fake Lenders may need upfront payment or fees in the form of GST or processing fees.
The loan offer is only valid for a few hours or days: Scammers create limited-time offers and pressure applicants to make rapid selections. Only after examining CIBIL credit history can reputable banks offer interest rates and lending quantities.
What to check for:
Check for the Reserve Bank of India's (RBI) mobile-only Non-Banking Financial Company (NBFC) licence on the website/mobile app, as well as contact details such as phone number, email, and physical address.
Examine a variety of expert websites that evaluate various loan applications.
The Loan Sanction Letter, a copy of the agreement, and an EMI amortisation schedule should be sent to you by the lender.
Processing fees (not to exceed 1% of the loan amount) plus stamp duty, DD costs, and GST on the deducted amount shall be collected.
If you are a victim of fraud, make a complaint online as soon as possible.
Conclusion
There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Instant Loan if you have any more.