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Instant Loan Apps: Here’s how to avoid online loan fraud

According to a recent estimate by the Reserve Bank of India, approximately 1,100 online loaning apps are available across various internet platforms in India. Surprisingly, over 600 of these Android apps in India were illegal, and they were spread over more than 80 app stores.


A central bank working group has proposed laws that would require these digital lending apps to be verified in order to prevent scams. The committee was founded in response to allegations of digital loan fraud, including harassment and unfair collection techniques by various digitally operated apps. In the realm of digital loans, scams exist, but they can be avoided provided certain rules are followed.




"There have been unintended consequences as a result of increased reliance on third-party lending service providers mis-selling to unsuspecting customers, concerns over data privacy breaches, unethical business conduct, and illegitimate operations," according to the report, which recognises the importance and benefits of technological advancements.


Customers should follow a few easy criteria while taking out a loan from these speedy digital lending apps in light of this warning, at least until the Centre or the RBI announce new instructions. "A nodal agency should be established in the digital lending ecosystem to evaluate the technology qualifications of DLAs of balance sheet lenders and LSPs." "It will also keep a public register of the verified apps on its website," the RBI said in its report.


Check with the Reserve Bank of India to see if the lender you're borrowing from is registered. To ensure that there are no issues with the loan repayment, you should first evaluate the creditor's credibility. Lenders who do not adhere to the RBI's KYC criteria should be treated as suspects immediately away.


Keep an eye out for red flags


Scammers rarely have a website, in contrast to real digital loan apps that follow all RBI-mandated rules. Even if some of them are stated, you should evaluate them properly to guarantee that scammers are not using them. You should read the app's reviews in the app store before making a decision. Check to verify if the app is compatible with a bank or an RBI-registered non-banking financial company (NBFC). Check with that NBFC to see if they are interested in doing business with you.


Read the Terms and Conditions and make sure you understand them


Before selecting the 'Proceed' option, make sure you read and understand the fine print. It's important for everything, but especially for digital loan programmes. Read the terms and conditions before making a decision.


Refuse to accept loans from unauthorised sources


Avoid non-verified lending apps since an increase in cyber crime related to borrowing has occurred from the increased use of technology. Avoid using non-verified digital lending apps that ask for personal information like bank account numbers, credit card PINs, or addresses.


Look for more than just lower interest rates


Aside from interest rates, there are a few other things to think about. You should stay away from programmes with a lot of pre-payment, processing, or pre-closure costs.


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.

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