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Fetching loans of various kinds can be quite hectic and long-drawn. However, the digitalisation of financial services has made processes such as loan application, approval, and disbursement a cakewalk. Today, all you need is an instant loan mobile app and you can apply for a personal loan at any time from anywhere. The procedure to acquire loans in such cases requires little to no documentation. While it may sound like an ideal scenario, it comes with its own set of risks and potential disadvantages. Let us look at them in detail.
An Insight into Instant Loan App
An instant loan app is a great way to secure a personal loan online. A credible lending app has many ways to ensure the security of your personal information. It uses advanced encryption technologies to protect your personal data. A good personal loan app makes fast lending decisions and gives the applicant cash in hand without delay. The user experience is also exemplary with automated payment reminders and email notifications.
Another benefit of using a good personal loan app is its accessibility. It is possible to apply for a loan at any time and from anywhere. In addition, most loans are secured, making them perfect for bad credit situations. You can even make your loan application on the go via your mobile phone. You can access your account and make payments anytime, anywhere. Moreover, you can use the eKYC feature to save time. Lastly, you can feel secure knowing that your information is completely secure and safe. There are no hidden fees or charges, and you can access your account by logging in with a password.
A good personal loan app gives you all-time access. You can download the app from Google Play Store or Apple’s App Store and use it whenever you need to apply for a loan. You can even apply for a loan online, without visiting the lender’s office. Moreover, you can avoid the hassle of submitting paperwork at a physical branch. You can also use eKYC features in the mobile version of a personal finance app. It is safe and secure. You don’t have to worry about losing your money since you don’t have to give your financial information anywhere.
Instant access is another advantage of an instant loan app. It allows you to apply for a personal loan from the comfort of your home. With this, you can take advantage of the eKYC feature which eliminates the hassle of filling out paper applications. You can also avoid unnecessary paperwork with the help of a mobile loan application. Using a good personal loan app will give you peace of mind while your loan gets approved and funds are disbursed into your bank account.
A trustworthy instant loan app is a great way to get a small loan without having to spend hours in front of a computer. The app requires borrowers to submit certain documents and provide the lender with their current income and employment status. A good instant loans app checks if all these things are in order and will not try to make you feel pressured to sign up before you’re ready. Many of these apps are available for both Android and iOS users. The best way to avoid scams is to use instant loan apps operated by credible finance service providers. A reliable app will have a good reputation and be easy to navigate. In addition, a trustworthy application will have clear terms and conditions, which will make the process as simple as possible.
RBI’S Actions against Fake Lending Apps
In 2021, around 600 applications facilitating instant loans were barred by the Reserve Bank of India (RBI) owing to their suspicious demeanour. Things might seem a little complicated to the existing customers if an app is banned. It is essential to highlight that the recollection of an instant personal loan online is a straightforward process that remains unaffected with other services’ getting banned.
Authenticating an Instant Loan App
Verifying the Lending Source
Before getting involved with an instant loan app, users must verify the app’s association with authorities such as a central governing bank. Any company with official ties with regulating bodies are automatically bounded by the peripheries of a certain set of rules—a proper decorum. Within the parameters of such strict guidelines and regulations, companies cannot trap their users in any potential fraudulent schemes. In case a certain company is devoid of any such regulatory pressures, they are bound to pose a greater risk to their user’s financial security.
Verify the Website of the Company
The first red flag is the absence of an associated website. If an instant personal loan online platform does not have a website, you must not go ahead with any procedures on it. If a company happens to have a website, the next best thing to do is to check the presence of ‘HTTPS’ in its URL. If a company is credible, it would naturally want to be associated with trusted sources, even online and would definitely attempt to protect it from any potential virtual dangers.
Look Up Their Physical, Tangible Address
One other way of checking the credibility of an instant loan company is looking up their physical address and other contact details such as phone number, email addresses etc. The absence of such significant details can be indicative of any extent of fraudulent intentions.
Check the Plausibility of the Rate of Interest
One of the best, most conspicuous indicators of the presence of fraud in an instant loan app is an excessively high rate of interest. Lack or absence of transparency in matters of monetary transactions is the most common indicator of fraud in instant loan apps.
Look Up Online Reviews for the Company
Past performance of a company or views of their previous users or customers regarding the same can be indicative of their true nature. Therefore, before fetching a loan, checking the online reviews on an instant loan company is a good way to start.
Conclusion
Desperate times call for desperate decisions. While it may sound fair in times of a crisis, it does not justify massive monetary losses due to poor judgment. Always prioritise security over speed and ease while fetching loans. The credibility of an instant loan app can be dictated by the general transparency of the company in various proceedings, amongst many other things.
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