With the advent of digital lending making it very easy for users to get loans with just a few clicks on their mobile phones, the downside to it has been the creation of scam platforms. There is an ever-present risk of falling victim to a scam, however, that can easily be avoided by knowing how to spot a legitimate lending website and distinguishing it from a scam.
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Friday 27 Dec. 2024
What are Fake Loan Apps?
Simply put, apps that claim to lend money but provide no services actually end up being the biggest threat, to which there is no solution in the near future. With the promise of doing the bare minimum, scam apps try to get hold of all those who are addicted to money.
And whereas all these transactions are legal in their language, the reality is that when someone wishes to withdraw a loan from a loan app, they end up getting charged huge interest rates.
To manage these risks, borrowers can easily find a public database of other fake loan apps in various different places. Most of the times, these apps can be found on the lists published by the regulators or consumer rights associations where they actively inform users about the potential risks they can take.
Poor Credit Score Consequences
But those who find themselves in tough situations in dire need of cash tend to have low credit scores and hence are potential targets for low budget lending platforms. Scoring yourself in such apps to avoid cash problems is what most apps aim for, but then, few others take the opportunity on life’s gamble.
It is recommended for people with a poor credit history to check out such lists which list applications which provide fair lending practices, referred to as a ‘bad CIBIL loan app list’ as it should allow the users to pick wisely. In this manner, the users will be able to receive the required money while being able to keep away from the predatory practices.
How to Spot a Legitimate Loan App
Regrettably, such practices are on the rise and have resulted in a significant increase in the number of financial frauds. It is recommended that people only look for apps which comply with the following
- Ensure that you are insured, Always download applications related to banking which come in contact with RBI approved banks or NBFCs.
- Always be obliged, users would want to surf without limitations, if an application is not upfront regarding the interest rates, processing fees, etc, it is best to avoid it.
- Trust the chances, when the odds specify a potential outcome, always trust it. Similarly, if an app has multiple positive reviews and states the same, the community is more inclined to trust the app.
- Keeping the Sensitive Safe, Avoid giving unnecessary details and information for there is no reason for the app to ask for it.
Tips for Safe Borrowing
Despite being brutally honest, users should still proceed carefully and follow these principles:
- Go seeking if you know who you are looking for: Make sure that you only download trusted applications and ensure they are not counterfeit.
- Always understand the user agreement: it goes without saying encrypt everything, avoid hidden charges.
- Limit Permission: Don’t allow access to your Media or Contacts.
- **Consult Trusted Resources**: Before using a loan platform, always check the list of fraudulent and poor rated loan apps to avoid using untrustworthy sites.
The Role of Awareness
The best safeguard against deceitful lending platforms is making consumers aware of such practices. Educational institutions, including the Reserve Bank of India, remain active in cautioning users against such platforms. Ignorance in such matters can cost borrowers in their wallets and mental health.
Conclusion
Never is it right for the advantages of loan apps to come at the sacrifice of security. Resources that are available to borrowers such as fake loan app lists and bad CIBIL loan app lists help borrowers steer clear of frauds. Information coupled with caution enables users to take on the lending world with confidence and ease.
