How To Check If A Personal Loan App Can Be Trusted

There are a plethora of loan apps in the market that give out personal loans. Read on to know 5 tips to check if a personal loan app can be trusted at IIFL finance.

6 Dec,2022 17:47 IST 50 Views
How To Check If A Personal Loan App Can Be Trusted

If one is facing a financial crisis or a severe cash crunch and needs money urgently, a personal loan can come in very handy. In fact, personal loans are among the most popular borrowing options in the market simply because they are easy to apply for, are uncollateralised and can be paid back in easy installments.

All one needs to get a personal loan at a favourable rate of interest is a healthy credit history and a good CIBIL score, which is essentially a three-digit number between 300 and 900 that maps an individual’s credit profile.

These days there are a plethora of loan apps in the market that give out personal loans.

But as is the case with all things digital, one can never be too careful while choosing which lender to go with, as cases of fraud have been rampant and increasing by the day.

People tend to gravitate toward these loan apps as getting personal loans from banks and non-banking finance companies could be relatively time consuming, as they follow their own processes of due diligence.

The mobile apps, on the other hand, offer personal loans with virtually no paperwork and in a matter of minutes.

So, while one can borrow lakhs of rupees in a matter of minutes, these loan apps do not often offer these loans legitimately and may even charge exorbitantly high rates of interest.

Apart from charging high interest rates, these apps also tend to collect personal data, which they misuse. So, a borrowers must be extra cautious in verifying such apps before starting the loan process.

Tips To Check Personal Loan Apps

RBI-Regulated:

As a first step, a borrower should make sure that the lender is registered with the Reserve Bank of India. RBI-regulated lenders have to mandatorily follow strict codes of conduct. If an app is not regulated by the central bank, it may not follow any such norms and could act as they please.

Secure Website:

Second, borrowers should make sure the app has a secure website. If a loan app does not have a secure website, then that app may be a fraud and should not be trusted. Moreover, even the website should have an “https” address, as that will mean it uses secure servers and cannot be easily hacked.

Physical Address:

Third, a borrower should always see if a loan app has a physical address or not. They can do so by searching it online or by actually visiting a branch if they happen to be in the same city where the loan company is based. Phone numbers and email addresses given on the website or app should also be thoroughly verified.

Interest Rate, Repayment Terms:

Borrowers should check the rate of interest being charged by the lender. If it is much higher or lower than the market rate, they should not trust such a lender. Moreover, if the lender is not fully transparent about the lending rate or approves the loan without any verification and asks for a loan fee before the money is even disbursed, it may not be a genuine lender in the first place and could be a scam.

Check Reviews:

Finally, borrowers should always check for online reviews of the lender. They should only borrow from trusted loan apps or websites, whose antecedents are very well known.

Conclusion

As you can see it is vitally important only to borrow from a trusted lender. This is why you should only approach a well-established lender like IIFL Finance when it comes to taking out a personal loan.

Not only is IIFL Finance one of the most reliable lenders in the market, it also offers some of the most competitive interest rates and a hassle-free application process which can be completed online.

The loans are disbursed very quickly and can also be repaid just as easily and flexibly, online and from anywhere.

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