According to RBI, around 600 illegal money landing apps are running in India. From this data, you can imagine how much risk of loan fraud is out there. That’s why it is necessary to be able to identify, as well as protect yourself from online loan fraud. This article covers the ways they approach you and how you can check the authenticity of instant loan apps.
Know how fraud loan apps approach you
These apps use keywords such as instant loan, quick loan, etc.These apps offer loans at an appealingly low-interest rate.They send instant loan links to your mobileThey ask for your personal information such as credit card pin, bank details, address, etc.
Not all these online apps are a scam, some apps are authentic also and they really provide the loan online but before hitting the proceed you must be sure about their authenticity. Before giving any information about yourself you should read ALL THE TERMS AND CONDITIONS thoroughly. Other than this, Following are some points you should keep in mind.
How to check the authenticity of instant loan apps
Are they registered with RBI
This is the very basic way of investigating the authenticity, no matter who the lender is, they should follow the RBI guidelines and should be registered with RBI. If this criteria is not fulfilled they are definitely a scam. You should not take loan from them.
Are they integrated with NBFC’s
Instant loan apps often work in association with other companies which are called Non-banking financial companies or NBFCs. You must check the background of instant loan apps are they registered with NBFC if yes then you should visit the NBFC to confirm the authenticity.
Do they have any physical existence
This one is most easy way to avoid online loan fraud. Check if these apps have any physical address? If it is an online scam, they won’t have any physical existence. So as to protect themselves from any further legal actions.
Do they have any secure website
It is a green sign if your lender has a website and even greener if it is a secure one.
Secure websites have a lock icon along with their address in the URL section.Websites with their address starting from http:// are the secure ones against third party.
So if it is an authentic app, they will prefer to follow these rules, so as to protect your personal information.
Check their online ratings and reviews
Past app users definitely leave their experience in their reviews. Although Google Play Store has automatically the ratings and review section. But there are many online review sites also. Such as Angie’s list, Yelp, Consumer report, Consumer affairs etc. From where you can check out reviews for the particular lender you are taking loan from. Instant loan apps are not always unauthentic but due to possibility of cyber crime cases it is very necessary to be aware of pros and cons. So rather than just proceeding mindlessly it is wise to follow the above mentioned tips to protect yourself from online loan fraud. And you don’t get lured by low interest rates. Hopefully this article will help you to differentiate between authentic and unauthentic online loan apps.
