How to Keep Yourself Safe from Fraud Lending Apps?

With the rise in digitalization, there has also been a rise in digital scams. Many cases of cyber fraud have been seen in the past few years, where several people have become victims of these frauds & scams especially related to fraud money lending apps!The increase in economic stress, especially during this COVID-19 has caused the scammers to prey on unsuspecting people.The more the demand for a quick loan, the more are the chances for loan scams. 

A basic understanding of online loans and various loan apps will help you stay safe from fraudulent activities. If you are willing to know the details regarding how you can keep yourself safe from all the scams of personal loan apps or activities, you must scroll down and continue reading.

RBI Approved Lender or Loan App

The first and foremost thing that you must ensure while applying for a personal loan through an online loan app is whether the lender is registered with the central bank authority, i.e., RBI or not. Also, the borrower should know that all the lenders follow the KYC process while lending a loan amount. The borrower must make an effort to know the credentials of the lenders just like lenders do while giving the loan amount to the borrowers. This will help to ensure that the trust is built up between both the parties, and you will get an idea about lenders through their actions. Take advantage of digital advancements and check online if the lender is registered with RBI or if the services provided by them are legitimate or not.

Decipher the Red Flags

Illegal lending apps do not have a proper website. So, you should never download an app if the company has no website. It's a red flag that the lending company is a scammer. You must also check thoroughly whether the company is legitimate and is registered with the Reserve Bank of India.

Clarity and Transparency

It's advisable never to download the loan app from the lender's website; rather, you must download it from Google Play Store or the App Store as there are additional checks that an app goes through to get listed. Always read the privacy policy mentioned on lending app stores or the websites. Furthermore, ensure that the charges of interest rates and fees are mentioned transparently. So, If you have also downloaded these apps, then delete them immediately, otherwise, you may suffer a lot.

Other Tell-tale Signs

The online lending apps usually offer hassle-free loans in just no time; therefore, it charges high-interest rates from the borrowers. If the app is offering a personal loan for less than 30 days and that too at a very high-interest rate, this can be a sign of caution for you all. Moreover, even RBI has cautioned prospective borrowers never to share their KYC documents with unauthorized apps as they can be misused. These are some of the steps that you, as a borrower, should follow to save yourself from fraudulent activities. Below mentioned are some of the signs of detecting fraudulent lending apps:

• Dubious lenders create the time boundation on the person who needs instant money. Creating an immediate pressure on the borrower is a strong indication of a trap.

• If the lender fails to disclose the charges involved in taking the loan, it implies something is fishy.

• Ensure that the portal states "https://", in case the 's' is missing from 'http', avoid the lender at all costs because this indicates that the website is not secure.

• RBI has made it mandatory that the lender must grant a sanction letter before loan disbursement. If the lender refuses to give that, don't go ahead.

• All lenders must share the loan agreement with the borrowers to make the terms and conditions crystal clear.

• Never scan a barcode if asked to scan for receiving the money.

One of the safest and secure lending apps is TrueBalance. It is a mobile loan app operated by Balancehero Pvt. Ltd., based out in Gurugram, India. From the TrueBalance personal loan app, you can apply for an amount ranging from INR 5,000 to INR 50,000 without risking your personal belongings. Moreover, the interest rates charged by the lenders on this app are quite low, which is only 5%. Moreover, this app is registered by RBI and works under its rules and regulations. For more details, download the loan app from Google Play Store or visit their website!