How to Identify if an Instant Loan App Is Safe?

At times, we find ourselves in a state of emergency wherein we need instant funds. Instant loan apps have proved to be beneficial at the time of crisis, providing safe and secure loans instantly in just a few clicks. 

Traditionally, someone who wishes to take a loan has to visit the financial institution personally, have to submit documents and then wait for a few days to have the loan approved. Additionally, it takes 2-3 weeks for the loan amount to be credited to the receiver’s bank account. This long process can be cut short with Instant Loan apps which usually provide a maximum of 2 lakh rupees as loan and the entire process is paperless. These apps are useful at times of unforeseen emergencies including medical emergencies, educational emergencies etc. 

These apps usually have a criterion for eligibility including income, age, purpose etc. and once the individual is deemed eligible by the app after providing information and documents, a loan can be taken in minutes. 

The best Instant Loan apps come with EMI calculators, and credit score calculators with a 24 X 7 tracking system. Moreover, these apps have legal systems that ensure the safety and security of transactions. 

However, we all have doubts regarding the legitimacy of the app we are using. Financial crimes are on the rise and ensuring that our transactions are safe and the app we are using is legal is imperative. A woman employee of the Telangana Agricultural Department was blackmailed and her personal details were posted online after she took a loan from an app. So how can one protect himself/herself from fraud? Are instant loan apps safe? How can one identify the right app? There are ways to know if the app you are using is safe or not.

How Safe Are Instant Loan Apps? 

Now the question arises, are these apps safe? The safest loan apps are always connected to a financial institution, usually, a bank, that supports the transactions. These apps are safe and the interest charged is also as per the terms and conditions mentioned. Furthermore, most apps have support teams that guide and support you throughout the repayment process. However, there are fraud loan apps that cheat customers. How can one identify the safest loan app and have safe transactions? 

Ways to identify safe instant loan apps

How can one identify a legitimate instant loan app that will ensure safety and an app that is trustworthy? How can one be sure that they aren’t being cheated and that they will get support from the organization throughout their loan repayment tenure? Here are a few ways to identify safe apps: 

Check if the app has a local office and website 

Best and safe loan apps have local offices and websites, making it easier for their customers to connect with them. Ensuring that the company has both an office and a website will increase the chances of the app being legitimate and safe. Such organizations understand that consumers have questions and they keep themselves accessible making the consumer experience their top priority. 

Ensure the app is partnered with RBI 

Best and safe loan apps of instant loans are partnered with financial institutions that are partnered with RBI or the apps are directly connected with RBI. This is a necessity for any app that provides instant loans and hence, cross-checking if the app has partnered with RBI is imperative in determining if the app is safe. It is illegal to establish oneself as a loan-providing institution without authorization from RBI. 

Check for reviews and ratings online 

Reviews and ratings on google play have always been beneficial. Good reviews from at least 10 people with 4-5 stars is important before making the decision to take a loan from a particular app. Bad reviews are an indicator of illicit activities or inefficiencies and such apps must be avoided. 

Ways to determine fraud apps 

As there are ways to identify safe instant loan apps, there are ways to identify fraud apps and to stay safe from their crime. These are a few ways to stay safe from instant loan fraud apps and have secure transactions. 

If the app asks for more than needed personal information 

Most apps ask for documents such as Aadhar card and Pan Card and may ask for access for contacts and gallery however, access to email and other personal apps is not something that instant loan apps require and such demands are suspicious. Avoiding apps that ask for such information is a must as these are signs of fraud loan app. 

If the app does not have proper documentation of terms of conditions and partnerships in place

The app must have proper documents including terms and conditions, terms of use and authorization with financial institutions and/or RBI. If this information is not in place, the app must not be trusted as it may cause issues later. Most apps have organized and legal systems for all transactions and hence, checking the same is important before making any transaction. 

Keep an eye on the process 

Usually, instant loan apps help in receiving loans in a few clicks and these apps are particularly useful for urgent situations. However, no matter how urgent the situation is, being careful at every step in the process is important and avoiding suspicious actions is important. Reading every word of the terms and conditions carefully, ensuring you read everything before every click is important as at any point, there can be signs of the app being a fraud loan app. 

Verdict 

In order to make the right choice of a safe personal loan app, one must keep all the above factors in mind while exploring different kinds of instant loan apps. The app must be authorized by RBI and must have a website or a local office. Furthermore, the app must have all documents including terms of conditions handy as they are useful in case of any mishap. Rest assured, an instant loans app like Finnable is safe and is in fact quite beneficial at times of need as the approval process is quick and efficient while there is also a chance to obtain rewards by enrolling. Try out the Finnable app today for no-frills, zero-hassle unsecured loans!