The digital revolution has also improved access to the loan application procedure. People may apply for a Personal Loan from the convenience of their homes with little documents.
While many individuals will benefit from this, it has also encouraged the growth of internet fraud in our nation. Consequently, the following advice can help you prevent online fraud while applying for a personal loan.
The time you become attracted by the low interest rates of rapid loan applications is the moment you need to be certain of their legitimacy. Hurry is the devil’s business, as the proverb says. In this instance, the same holds true. Anyone can forget to use caution in an emergency or when they are rushing.
The RBI estimates that there are 600 illicit money landing applications active in India. You can see from the data how prevalent loan fraud is. Because of this, it’s important to be able to spot and avoid online loan fraud. This essay explains how they contact you and how to verify the legitimacy of rapid loan applications.
Understand how Fraudulent Loan Applications will approach you
- They send links for instant loans to your mobile device.
- Your address, bank account information, credit card pin, and other personally identifiable information are requested.
- These apps provide loans with enticingly low interest rates.
12 Tips for Avoiding Fraud When Applying from an Instant Loan App
The following are the 12 Tips for Avoiding Fraud When Applying from an Instant Loan App
1. Are they listed with the RBI?
No matter who the lender is, they should adhere to the RBI criteria and be registered with the RBI. This is the most fundamental method of determining the validity. They are unquestionably a hoax if this requirement is not met. Take no loans from them, please.
2. Before exiting a Website, always Log Out
Whenever you sign in to an online banking or lending website, sign out before leaving the page. Make cautious to protect the details of your credit cards and to keep your financial information private. Because doing so can assist you in preventing identity theft, keep your financial records safe and secure.
3. Check before signing the Loan Agreement
When you request for a loan, the lender sends you a loan agreement with all the terms and conditions. Before signing the contract, make sure to thoroughly read the fine print and confirm all the loan terms. This is done to ensure the accuracy of the entire lender’s information and the loan’s conditions.
When you apply for a loan, you might have to pay some processing costs. Before giving the lender your private information and sending them money, check out the company. Through the Reserve Bank of India website, you may determine whether the lender is legitimate.
4. Phishing Calls, SMS, and Emails Must Be Avoided
You must be cautious of any phishing calls, SMS, or emails you get. Apps that verify identity and display caller information can be used to do this. Usually labelled as spam, fraudulent phone numbers will let you know who is phoning you. Ensure that you inform the authorities if you come across any numbers similar to these.
5. Are they physically present somewhere?
This method of preventing online loan fraud is the simplest. To see if these applications have a physical address, check. There won’t be any tangible evidence of them if it’s an internet hoax. in order to defend themselves against any upcoming legal actions.
6. Updating your Mobile and PC Security
The operating systems on your phone and laptop should be updated on a regular basis since they add new security features that keep you protected. Make sure to update any antivirus programmes you may have installed.
7. Utilize a Private and Secure Internet Connection
By using a public WiFi network to apply for a loan, you run the danger of fraudsters getting access to private information like your card and bank details. Therefore, it is worthwhile to take extra measures and use a secure and private internet connection while you are entering personal information online.
8. The Site’s Privacy Policies should be read
9. Create Secure Passwords
You can simply keep your financial information private by using a strong password. Ensure that your password contains special characters, digits, upper- and lowercase letters, and more than eight characters.
10. Refrain from Granting Remote Access to Your Computer
Any caller who requests remote access to your phone or computer is probably a fraudster. Any private financial information you may have kept on your phone might be accessed remotely by someone. Therefore, take precautions and never give your consent.
11. Are they integrated with NBFCs?
Instant loan applications frequently collaborate with other businesses known as NBFCs. You need to verify that rapid loan apps are registered with NBFCs. If so, you should go to the NBFC to verify the legitimacy.
12. Check their Internet Reviews And Ratings
There is no doubt that past app users share their experiences in their reviews. Nevertheless, the Google Play Store automatically includes a ratings and reviews area. But there are also a lot of review websites online.