Monetary needs often result from emergencies such as the absence of employment or a medical emergency. You do not want to borrow from unauthorized lenders and further your financial difficulty in such a situation. That’s why you need to choose a genuine and safe instant loan app.

How safe are instant loan apps?

A credible loan app keeps your safety intact when you transact through them. 

Getting hold of a loan app from a credible source like Google Play Store eliminates the chances of fraud. Still, you need to be sure about the loan app with personal checks. You must not install instant loan apps not approved by regulatory authorities in India like RBI for getting loans.

Make a wise choice while availing of personal loans online. Legal instant loan apps work in association with authorized NBFCs or financial institutions. Such apps can be considered safe for online loan applications. PaySense is a credible instant loan app safe to avail of loans. PaySense offers instant loans from ₹50,000 to ₹1,50,000. 

5 ways to identify a safe instant loan app

If you want to avail of an instant loan and have a loan app in mind, you need to verify the app’s authenticity before using the loan application.

Below are the five ways to identify a safe instant loan app:

  • Does the app or its company have an offline address and a website?

The app from where you are planning to borrow must have a physical address. If you cannot find a legitimate physical address of your lender, you must avoid using the loan app. Loan scammers tend to remain anonymous to avoid legal aftermaths.

A genuine lender works from a registered location. Therefore, your lender’s name, phone number, physical address, and email address must be listed on their website.

Research about the parent company of the loan app. A credible lender has an official website that is linked to their app. If the loan app you consider using does not have a website, you must not get ahead with it. 

  • Is your lender or its partner company registered with RBI?

Lending apps are a great way to get quick personal loan online. However, you must recognize and keep away from fraudulent loan apps. 

You must check the credentials of your lender to see if it is connected with the RBI. The loan app and its company often work along with NBFCs and financial institutions registered with RBI to offer loans.

Be digitally savvy and financially aware and borrow only from RBI-registered sources.

  • Look up ratings and reviews of your lender online.

Past borrowers of the loan app often post product or service reviews on Google Play Store or other review websites. You can know about the quality of your lender’s loan by paying attention to their reviews. Also, take the app ratings on Google Play Store into account.

It is a good idea to look up the ratings and reviews of your lender online before using it. The reviews on genuine sites will give you a sense of how the lender functions. You will also know of any unethical behavior of the lender reported by previous borrowers.

  • Check how much personal data access is your lender asking for

Some lending apps can ask permission for contact as well as gallery access for authenticity and underwriting checks. Of course, trustworthy lenders would keep such information confidential and would not disclose it to third parties. 

However, with improved technology in the fintech space, lenders have become capable enough to do underwriting without needing to access your gallery and contacts by adhering to their vetted collection processes. Such capability of a lender effectively puts an end to any fraudulent activity. 

Also, responsible digital lenders perform Information Security Audits and regularly monitor AI functionality to keep their data secure. You must do your due diligence of the lender before handing over your details to it.

  • Does your lender have a website, and is it secured?

Look for a lock icon on the pages of your lender’s website where you are asked to enter your personal information. Websites with URLs starting from https:// are secure as they are guarded against identity thieves stealing personal information. 

If your lender is reputable, it will protect your data from loan scams and ensure that it is secure and inaccessible to others.

Moreover, if your lender is not transparent about essential things like loan interest rates, it most probably is a loan app scam.

Wrapping up

The above listed are only a few questions you must ask yourself before trusting a loan app with your information and bank account details. Many other such indicators can help you decide the credibility of your loan provider and their instant loan apps. You must be aware and recognize genuine, safe loan apps from fake ones.

Anil Sumra

Anil Sumra is a Digital Marketing Expert with more than 10 years of experience. He loves to write on various financial topics online to create financial awareness. He holds a bachelor’s degree in Finance & Management.

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