With the help of digital loan apps and websites, getting a loan has now become easier than ever. These apps are becoming increasingly popular because they offer benefits like multiple loan options, fast approval and immediate disbursement. But as easily as these apps offer loans, the danger in the form of fake loan apps is emerging.
Therefore, it is very important to know how to identify which app is safe and which can be a fraud. If you are also planning to take an instant loan, then keep these important tips in mind.
Please check the contact details
The first step to check the credibility of any loan app is to verify its contact details. Safe apps and companies always have a registered office address, customer service number and email ID. If an app has no physical presence or their website is not working properly, it may be a fraud.
Check RBI Approval
In India, all loan giving companies are required to get approval from RBI. Therefore, before using any instant loan app, confirm whether it is registered with RBI or not. A list of all such companies can be found on RBI's website. Taking loan from apps without approval may lead to problems like data theft, fraud and harassment.
Understand app ratings and reviews
Be sure to check the ratings and reviews of any app on Google Play Store and Apple App Store. If there are repeated complaints about high interest rates, hidden charges or poor recovery process about an app, then that app may not be safe.
Pay attention to data access permissions
Many apps ask for permission to access contacts, photos, location and other personal information from your phone. But the right apps always clearly state what details they need and why. If an app needs more access than necessary, be alert.
Verify the security of the website
If you are applying for a loan on a website, first check whether the website is secure or not. A safe website always starts with 'https://' and a lock icon appears near its URL. These sites keep your data secure by encrypting it.
Red Flags of Fake Loan Apps
No KYC process: KYC process is mandatory for every genuine loan app. If any app is offering loans without KYC, then that app may be a fraud.
Not providing loan agreement: Safe loan apps always provide a detailed loan agreement, which clearly mentions the interest rate, processing fees, repayment schedule and other terms.
Demand for advance payment: If an app asks for advance payment before loan approval, be cautious immediately. Genuine lenders never ask for money before giving a loan.
How to get a secured loan
If you want a safe and transparent loan solution, use platforms that are trustworthy. Platforms like Moneycontrol offer you instant personal loans from top lenders through a 100% paperless process. From here you can apply for a loan of up to Rs 50 lakh .
Overall, the convenience of instant loan apps may be tempting, but do not compromise on safety. Be cautious to identify fake apps and always choose RBI approved apps. Read the validity, reviews and data access terms of the app carefully before taking a loan.
Summary
At present, instant loan apps are becoming quite popular because they help in getting instant loans at the time of need. But not all loan apps are genuine. Therefore, it is important to check the apps to avoid fraud while taking a loan.
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Disclaimer
This piece/article is written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may contain references to products and services offered by Moneycontrol.
