Owing to human nature, you tend to get attracted to things available freely and which take considerably less time. In a fast-moving surroundings like the metro cities, time is equivalent to money. No matter whether it is an instant recipe, product delivery in 10 minutes, provision of instant services or quick cash loans – all of them are widely accepted and welcome.
When the pandemic happened in 2020, hybrid work patterns and remote working became a preferred choice. However, many sectors suffered massive commercial losses, and the impact was borne by common people. Many became jobless and experienced drastic pay cuts during the period. It encouraged individuals to avail quick cash loans for managing challenges on an instant basis.
Instant loan applications available on the Google Play store today even continue to provide quick cash loans at reasonable interest rates and flexible loan repayment tenure. Personal loan through digital loan platforms like Cashe Loan and Kreditbee Loan is addressed as instant personal loan due to complete digital procedure and instant disbursal in a single working day.
As online cash loan applications were popularized, various fraudulent incidents occurred where lenders or loan applications were scammed. It led to massive financial loss. Fraudsters targeted majorly those vulnerable to online loan procedures. Thus, the security and safety of loan accounts are of great importance when availing of instant cash loans through the online medium.
Hence, before registering in instant cash loan applications, ensure to be aware of certain things to make the most out of loan apps.
Beware of various loan scam applications.
When you require immediate funds, there is not a lot of time as well as patience left to authenticate the source of availing money. However, with instant loan applications, it is necessary to review the lenders’ and financial institutions’ backgrounds.
Do not ask for your CIBIL score.
Fake loan applications lure applicants with instant funds via online website ads. Additionally, they even send offers guaranteeing instant cash irrespective of your CIBIL score. Avoid falling prey to fake lending options and ensure to trust just the credible loan applications.
Illegal instant cash loan applications
Contrary to illegitimate personal loan lenders, legitimate lenders do not offer loans over phone calls. In place of unlawful lenders, they tend to call you to provide you with loan proceeds of your choice with zero requirements to gather information about your eligibility criteria.
Beware of illegal sites
No physical address and contact number are available when the lender is a scammer. Check the lender’s website address, whether it is HTTPs or HTTP. In case the site address shows HTTP, this means the website is unsecured. However, HTTPs are an indication that the loan website or application is secured.
Unregistered loan application
Check if the loan application is registered with the authorities and required regulators.
Check for online reviews.
The next way to become aware of instant cash loan applications is to keep a check on online reviews. When it is about picking up a renowned lender, often the online reviews can be influential and helpful. In case the cash loan app reviews do not place a favourable impression upon you, it is a warning signal to change to opt for a correct loan application.
Customer support
Trusted lenders offer 24 X 7 consumer support with the contact details mentioned on the loan application, where you instantly can call to get answers about all your doubts. Hence, when you plan to avail a loan from the instant loan application, you require to be cautious and aware of the fraudulent lenders available online.
Here are additional keynotes you must consider to avoid loan fraud through the online route.
RBI (Reserve Bank of India), in its current report, revealed in India, there are nearly 1,100 online loan applications on the internet platforms. However, very shockingly, as many as 600 of the apps were for Android phone users, operating throughout 80 application stores, were not legal. Proposal of stronger regulation for such digital lending applications, setting up a working group headed by the Central Bank etc., are the recently sought legislations for verification measures to stop scams.
Following various complaints about digital loan fraud, including unfair recovery activities and harassment by various digital apps, the committee was set. Digital loans are filled with scams but can be eliminated if specific rules and conditions are followed.
Acknowledging the advantages and importance of technological advancements, the report mentioned ‘there are unintended consequences subject to higher reliance on 3rd party lending service providers recklessly mis-selling to unsuspecting consumers, on concerns over unethical business conduct, data privacy breach and illegitimate operations.’
Keeping the warning in mind, it is necessary for the users to adopt certain thumb rules while availing of a loan from such instant digital loan applications till the RBI or Centre comes up with any new rules. RBI suggested in reports that a nodal agency must be set up, which basically will authenticate the DLAs technological credentials. Also, it will maintain a public register of verified applications on its site.
Here are crucial things you must keep in mind when availing of loans from the digital loan apps like Kreditbee or Cashe Loan:
Check if the lender is RBI approved
You should be aware that the lender through whom you are availing of a personal loan is registered with RBI. You must first verify the credibility of the creditor so that there are zero problems during loan repayment. Lenders who fail to follow the KYC rules set by the RBI must instantly become a suspect as they are not undertaking Central Bank’s guidelines.
Look for red flags
In contrast to credible loan apps, which follow the rules mandated by RBI, scammers often do not even have a website. Note that even if few are listed, you must thoroughly go through them to ensure the applications are not being run by any scammer. Also, you can go through app reviews mentioned in the app store before you make the final decision. Also, check if the application works with an NBFC registered with a bank or RBI. Visit the NBFC to ensure that the digital platform works with it.
Read to understand the terms & conditions
Before you click on the ‘proceed’ option, it is necessary for you to understand what is written in its fine print. Doing so will help you make an informed decision.