Mobile applications played an important role in bringing the digital revolution to India. Apps in the banking and finance sector have made people’s lives much easier. Many tasks can be completed in a jiffy while at home. However, with time, fake and illegal loan apps have also entered this sector and successfully defrauded people.
However, the Reserve Bank of India (RBI) will develop the Digital India Trust Agency (DIGITA) to deal with the country’s increasing cyber fraud. Today, we will tell you how, with caution, you can protect yourself from these fake loan apps.
RBI Guidelines
RBI has guidelines for the loan-granting process, which loan apps must follow. Check its website if you want to take a loan from any app. Here, you have to check with which banks and NBFCs the app has tied up. If this information is not given there, then avoid that app.
Download From Play Store Or App Store Only
The easiest way to avoid fake apps is to download them from Google’s Play Store or Apple’s App Store. Never download an app from an email, SMS or social media link.
KYC Check
True apps will always demand a KYC process from you. If an app does not ask for this process, you should consider it suspicious. KYC may seem like a long process, but it is designed to keep you safe.
Loan Agreement Check
Legitimate apps will always provide you with a loan agreement. It contains complete information about your borrowing amount, processing fees, interest rate and repayment schedule. Any loan app that does not give this agreement will come under suspicion. It would be best if you always asked for a loan agreement.
Demand For Advance Payment
Fake loan apps often start demanding a fee from customers before they give them a loan. If your loan app is making a similar demand, then be alert.
Must Read Online Review
Before using any loan app, review it on Play Store, Google, or Facebook. You should avoid using such apps if they have received negative feedback. With these simple tips, you can protect yourself and your hard-earned money.
