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Are Instant Loan Apps Safe?

Are Instant Loan Apps Safe?

  • By Saral Credit
  • October 14, 2022

In today’s world, everybody needs instant gratification. The same is true for personal loans also.

In such a situation, instant loan apps come as a boon, helping people with instant cash in their account with minimum office visits and a quick online process. Using an instant loan app means you are not much aware of the lender. This brings in the challenge of ensuring the lender's authenticity. Unfortunately, not everyone researches to ensure they are using a legit loan application.

Numerous mobile apps are nowadays available to provide you with quick loans. Such apps are highly used as they involve quick processing and disbursal.

This highlights a big question for instant loan borrowers - are instant loan apps safe to use?

The simple answer is YES! Provided you are armed with the facts.

There are several legal loan providers across the country provide instant loans based on your credit score and other financial factors. However, with authentic apps, numerous fake/scam apps are also available on the Internet that commits to delivering the best personal loan. Unfortunately, you end up becoming prey to scams.

So, how can you shortlist a genuine instant loan mobile app from the numerous options available?

If you are looking for an instant loan and have found a few loan apps, below are the pointers that you must consider to check the identity of the loan application.

Check for Offline Address:

Every lender (offering online or offline) loan services would always have a physical address you can visit. A physical address is a primary requirement to register any firm and offer authorized services. Some loan scammers hide the physical address and showcase a wide array of instant loan benefits that compel you to use the app and fall prey to scams. It's better to check the physical address to avoid legal action aftermaths.

The lender must have mentioned their Business Name, Phone No, and Address to access different business listing platforms. You should also consider the Google My Business listing authorized through Google.

Check Website:

A website is the digital presence of your business. It is the detailed knowledge about your firm alongside a list of services you offer. You must check the lender's official website and ensure the website has all the required information. An authentic website will always provide detailed information about its services, head office, contact number, email, etc., that you can consider if you need to connect with the authority.

Read Online Reviews:

Online reviews have become a strong option for borrowers to check how loan apps serve their customers. You are not the first one to borrow from any instant loan app. Numerous people have already used the instant loan application. Hence, you must check their experience and evaluate the app.

Online review websites, Google My Business, and Google Play Store are some prominent ways to find what previous customers say about these applications. Make sure you consider the comments in decision-making.

However, make sure you only consider genuine websites to read reviews. Check the authenticity of the customers who have shared their experiences across different channels.

Check Details Required by App:

Using an instant loan application means you need to allow a few permissions before applying. Most smartphones are android based, where apps commonly require permission to access messages, email, camera, microphone, gallery, etc. You must ensure the app isn't requesting unnecessary permissions that are of no use. If you find such requests, check thoroughly, as it might breach your security and steal your sensitive data.

Furthermore, when applying for an instant loan, check the list of details required. The prerequisite includes your name, date of birth, salary, loan amount, etc., which are common for all lenders. However, no lender ever asks for your bank details, card details, etc., when applying for an instant loan.

You must check the details required and take action accordingly.

Additional Reading : Top Banks for Personal Loans in India

Check App/Website Security:

Nowadays, Google has become strict in approving any application in the Google Play Store. So, you must check what Google says about the security aspect of an instant loan application. With time Google reviews the mobile apps and analyzes their security level that ensure your data always remains safe.

Year-round, Google removes many loan apps that fail to meet the security guidelines. Regularly check such lists and ensure you are not going to use any of them.

When surfing the lender's website, make sure it's secure. A website without HTTPS isn't the right play to proceed with your instant loan request.

Check for Associated Charges and Interest Rates:

There are multiple charges involved in any loan facility. The instant loan includes processing fees, late fees, etc., which are common to all credit facilities. However, instant loan mobile applications might involve a few other charges that are initially hidden.

You must check for hidden charges and avoid the mobile app if anyone is asking for the same.

It's also important to read the full disclosure document before applying for a loan. Authentic loan provider applications allow you to read full disclosure documents. This gives you the information about what you are getting alongside the Terms and Conditions.

Additional Reading: What is the Lowest Personal Loan Interest Rate in India?


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