There are times when some middle-class employed professionals require immediate funds to fulfil certain financial emergencies. A message promising an instant loan approval in 5 minutes with no paperwork draws their attention. The message also includes a link to download the loan app and get the offer. They may believe the message with no second thoughts and click on the link to download the app, and proceed with the loan application.

As promised, you enjoy the loan amount in no time; however, the joy is short-lived as you get a call in just a few weeks, asking to make the repayment in just 10 days with ample interest. Moreover, the representatives threaten you in different ways if you fail to make the repayment. Sounds familiar? This example represents how someone falls victim to a digital loan application scam. Illegal lending apps promise you loans through apps with attractive offers. This is exactly why you must be aware of the safety tips when applying for a loan online.

Safety Tips For Digital Borrowing

When applying for a loan online on an instant personal loan app, make sure to follow the safety tips given below:

Select a lender registered with the RBI

Only RBI-registered borrowing institutes are authorised to offer loans. In India, you must cross-check if the lender is registered with the RBI to provide loans. Make sure to cross-check the RBI registration number of the online loan app before clicking on the install button. Also, visit the website of the loan provider to verify their background and authenticity.

Check link authenticity:Some of us receive messages, such as " You are eligible for a personal loan of rupees 2 lakh instantly”, “click on the link given below and get the offer”. Alternatively, you are also given a number to call. Make sure to never click on such links or numbers, unwanted messages.

Also, before you install the app, make sure to double-check the link. Fraudsters often cover the link address by replacing a few characters in the link address.

Avoid pushy lenders

A Pushy online loan is a big red flag. Any time a lender tries to sell a loan aggressively by mentioning a specific expiry deadline or a limited-time offer, chances are the loan is fishy.

App permissions

When you download the app, it asks for multiple permissions. Rather than providing all the permissions without a cross-check, make sure to verify if the app should be given access to certain sensitive information, such as contact info, pictures, bank account details, or passwords. In case you feel permission is not required, uninstall the app immediately.

Demand for instant payment of processing fees

In case the loan provider demands an upfront processing fee, it may be a red flag of an unreliable lender. The processing fee is either deducted from your disbursement amount or demanded at the time of disbursement. However, in case you fall victim to such loan fraud, rather than panicking, make sure to be aware right from the start to avoid a loss.

Conclusion

When applying for a loan with a lender, step back immediately if you find anything fishy and report it right then. Only select a reliable lender who offers complete transparency, along with ensuring the security and safety of your customer experience.