How to Check If a Personal Loan App Can Be Trusted

The Indian government blocked 27 digital personal loan apps in India, leading to a huge crackdown on bogus loan apps. The Ministry of Electronics & Information Technology (MeitY) made this judgement after getting a demand from the Ministry of Home Affairs. There were far too many fake loan apps on the Google Play Store and Apple App Store, robbing users of their funds. Sadly, this came when you needed money and had been refused by regular lenders.

Such events have shaken your trust in such loan apps greatly. But it wasn’t all gloom and doom as trusted apps also aided so many people in getting funds fast. This shows one thing: the industry for FinTech firms is expanding. If you want to borrow money from a reliable app and avoid falling victim to bogus lending apps, pay an alert to the warning signs listed below and make an educated choice.

What Exactly Are Personal Loans?

A personal loan is borrowed at a fixed rate and repaid over time. These loans are unsecured. Thus, no security or assets are required. Use the loan proceeds to meet your urgent money needs, whatever these may be. Yet, obtaining a loan is a fantastic solution to all your money needs.

A personal loan is likely one of the most vital duties. You must alter your budget to repay it on time, even without paying a lump sum. Yet, if you want a loan, make an effort to get one with the lowest personal loan interest rate available.

Warning Signs That a Personal Loan App is Fake

• Learn More About the App

Is the brand well-known? Is it trusted? Has anybody else checked out this lender? Before you place your faith in one of the apps, you must have answers to these concerns. Trust only well-known brands to ensure the legitimacy of payments.

• Inspect The App Store’s Developer Area

Check the developer part to see if an app is bogus or not on the app or play store. A firm’s website should almost always be included. It’s a big red flag if there is none. Many false lending apps for iPhone or Android do not even include a website. In some cases, they may include a link to a fake website. Do not install such apps.

• Decide Whether the Lender’s Site is Safe

Apps often list a website, which may or may not be an unsecured webpage. A secure webpage always has https:// before its URL. This protects your information from cyber felons.

• Avoid Offers with Short Deadlines

Fake loan apps have one goal: to take your cash and vanish. As a result, they could shower you with what appear to be appealing deals while claiming that they are only available for a limited time. Valid lenders will not set such deadlines and will have a series of steps in place for starting any transfer of funds. If you are forced to act quickly, you are being fooled, and the app is fraudulent.

• Go Through The Reviews

User reviews can often provide insight into the app’s validity. If the app has irritated enough debtors, there may be a review or two. So, before downloading the app, read the reviews.

Advantages Of Taking Out A Personal Loan

• Usage Adaptability

The flexibility of a personal loan is a huge benefit. Unlike a vehicle or housing loan, this monetary source is limitless and may be utilised for any need. In other words, you may use the money you borrow to pay for a wedding, vacation, education, medical costs, jewels, electronic items, and so forth. Said it’s a quick way to get you out of your current financial status.

• Rapid Payment

Pre-approval is generally granted quickly. Meeting the qualifying conditions is critical when it relates to a fast personal loan. A high credit score is a distinct benefit. The time taken for a bank or lender to issue funds varies, although it is usually within 24 hours and no more than 72 hours. As a result, it is your greatest bet in a crisis. If you are a current client of the bank you are applying to, you may be entitled to rapid online approval.

• There Is Little Paperwork

The paperwork that must be done, as with papers, is modest. This speeds up the operation. Don’t hesitate to get in touch with the customer service department at your nearest branch if you have any questions. They may even dispatch someone to your place to assist with the paperwork.

• No Collateral Is Needed.

You will not be required to produce any collateral if you apply and are qualified for a personal loan. As a result, your investments are secure. This is a big benefit if you do not own any assets. As it is unprotected, a personal loan is regarded as the greatest way to get fast financial aid. Once you’ve completed the preliminary steps, you’re ready to proceed!

• Attractive interest Rates

Personal loans have low-interest rates, making them open to all of you. This ensures that your EMI stays constant during the term of your loan. As a result, there’s no need to be concerned about the ever-changing interest rates that define other sorts of loans.

• Tax Advantages

A personal loan also has the added benefit of allowing you to claim a tax credit when you use it to pay for home repairs or building. According to Section 24B, the benefit sum may be up to Rs 2 lakh, yet, you must submit enough proof to prove that the funds were used for the stated use.

Conclusion

The questions listed above are just a few you should consider before providing your personal information as well as bank account info to a loan app. Many other factors can assist you in determining the legitimacy of your loan supplier and their personal loan apps. You should be aware of the distinctions between genuine and fraudulent loan apps.

If you want to know more about personal loans, visit Piramal Finance for related blogs and explore their products and services.