Using an app to apply for a personal loan has become a convenient option for most. However, individuals can be apprehensive regarding the reliability of such apps. Various issues, like safety, authenticity, and disclosure, can be bothersome. This is because there have been multiple fraudulent cases involving such apps.
Therefore, applicants using a personal loan app can check its authenticity by implementing different measures.
Measures to check if a personal loan app is reliable
On 14th January 2021, Google revealed that it had removed 118 personal loan based on red flags submitted by users and government agencies. Some of the many measures that they applied to search for these apps are listed here-
Step 1: Verify the lender
Before selecting an app to apply for a personal loan for salaried individuals, verify if the financial institution is registered with RBI. This is because all financial institutions under RBI are required to comply with their regulations. They have a strict code of conduct, ensuring reliability.
Step 2: Check physical address
Another red flag to look out for when selecting any personal loan application is checking the address, email ID and contact details present in the app. There are two ways of verifying the contact details present on an app. One is by using address verification tools, and the second is via address validation API.
Step 3: Website verification
The majority of fraudulent lending applications don’t have a website. Hence, before downloading an app, always check if they have a website. After which, verify the company’s identification number and certificate of registration. The applicant can instead apply for a Bajaj Finserv personal loan in minutes using their app.
Step 4: Check rate of interest
One way of checking the validity of a personal loan app is by verifying their set interest rate. For this, compare the rate of interest set on a personal loan with different financial institutions. The institutions will maintain a certain level of parity to keep up with the competition. Therefore, if the interest rate doesn’t match the market rates, the app can be fraudulent. Also, look out for behaviours like no transparency in loan interest rate or loan approval without checking the set credit score.
Step 5: Check online reviews on the app
If planning to use any app for unsecured credit, applicants should check for testimonials or reviews by previous applicants. This will provide an idea of the authenticity of the app and whether they are a registered institution. Search for portals where the customer has posted reviews on different apps to know about the general public opinion on the institution.
Applicants can either go through these measures to verify an app or apply for a personal loan for salaried using apps by leading institutions like Bajaj Finserv. They provide a loan of up to Rs.25 lakh at affordable interest rates. Also, applicants can track and manage their loans online through such apps.
To simplify the loan application process, individuals can opt for pre-approved offers on personal loans. These offers are also available on other products like business loans, credit cards, etc. To check your pre-approved offers, enter your name and contact details.
Therefore, applicants should be careful when downloading any personal loan app. Cases of fraud and scams aren’t uncommon, so always apply different measures to check the validity of an app. To avoid such issues, the applicant can also apply for unsecured credit at recognised financial institutions instead.
Must Read: Types of Unsecured Business Loans in India