In the digital-forward times that we are living in today, getting quick digital loans has become easier than ever. There are multiple loan apps available online, each catering to the different needs of people and offering attractive features. This is surely convenient, but it has also led to the rise of fraudulent activities.
To learn how to differentiate between a fake quick loan app and a real one, here are a few things you should check before you download the app and apply for a loan.
- Proper Licensing
Online loan apps have to follow certain guidelines and protocols set by the concerned authorities. In India, loan apps need to follow the guidelines set by the RBI. So, before you download an app, make sure they are licensed by the Reserve Bank of India and other relevant authorities.
- Absence Of Physical Address
A genuine online loan application will provide a physical office address, a phone number and a customer care email. Always check for these and verify this information to confirm that they are legitimate. Fake loan apps may avoid sharing this information or give fake details.
- Vague Loan Terms
Apps that offer quick loans need to clearly show information about interest rate, loan terms, applicable fees, etc., upfront. Fake loan apps always provide vague terms and conditions to bait users. Always ask for clear terms and loan conditions, even eligibility, before downloading any app.
- Unprofessional App & Website
This may not always be a clear sign of fraud, but professional lender institutions invest in high-quality website and app designs and make sure that they are user-accessible. If you come across any with grammatical errors, poor graphics or broken links, it may be a scam.
- Unsolicited Loan Offers
If you get unsolicited phone calls, SMS, or emails, constantly about an instant loan online, chances are that the loan provider is not reliable. If you sign up for a loan app and they follow up with a call, that would be a fair scenario, but if you are being chased by an unknown provider, be aware.
How to check the legitimacy of an online loan app?
Here are a few steps you must follow to ensure that the loan app you are downloading is a legitimate and reliable one.
- Research the app, website and other information that you can find online about the lender.
- Check their license and registration details.
- Read online reviews, ratings, or consult a friend who may have knowledge of the app.
- Read all the terms and conditions carefully and learn about all the costs involved.
- Understand the repayment terms.
- Download the app from legitimate sources only.
- Review the permissions requested by the app. If they are excessively invasive, be alert.
This is how you can stay safe while accessing financial services online. It is better to do your research and stay vigilant in advance rather than be casual and regret it later. Financial technology has definitely made our lives easier and convenient and opened a lot of doors for us, but it has also made it easier for people with ill intentions to access our sensitive information like financial data.