Mobile App Loan: The lure of instant loan! Relief or danger? Know the truth..

Mobile App Loan: The number of mobile apps offering digital loans in the country is increasing rapidly. The lure of an easy process and instant money is attracting consumers. But experts say that if caution is not taken, such apps can cause problems like financial troubles and data leaks. But are they really safe? Experts believe that if caution is not taken, such loans can become a big problem.

First of all, it is important to see that the app from which you are taking a loan is linked to a bank or an NBFC registered with the RBI. The Reserve Bank releases a list of authorized digital lenders and loan service providers on its website. Any unknown app or app downloaded outside the official store should be avoided, as it can put both your data and money at risk.

Be sure to read the app's review and rating.

Before taking a loan, be sure to read the app's review and rating. See if users have complained of hidden charges, privacy violations, or harassment. Also, check the app's privacy policy and customer care details.

The lure of a very low interest rate is a red flag
If an app is luring you with a very fast loan or a very low interest rate without much documentation, then it is a red flag. A real lender always does proper KYC and clearly gives information about all the charges.

Read the loan agreement carefully.
Many fake apps trap customers in a debt trap by charging heavy interest and penalties on short-term loans. Therefore, read the loan agreement carefully and understand the total cost.

Report to RBI's Sachet portal or Cybercrime Cell
If you ever have to face threats, harassment or pressure from any app, then immediately report it to RBI's Sachet portal or Cybercrime Cell.

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