How secure is it to take an Instant App Loan? Always keep these things in mind!

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Instant loan apps that promise instant loans are gaining popularity in the country. However, they often trap users with hidden charges and high interest rates, trapping them in a cycle of debt. Many people are not informed about the high-interest rates, and due to financial constraints, they take loans at exorbitant rates, leading to a vicious cycle.

To protect yourself from falling into this trap, here are some precautions and tips:

How to verify the security of an app?

The government is soon setting up the Digital India Trust Agency to verify the authenticity of these loan apps. Till then, you can check the credibility of an app by verifying its official website. If the app is not linked to its official website or lacks necessary contact details, it may be a scam.

Connectivity with RBI sources:

Verify if the Loan Loan app has partnerships with non-banking financial companies (NBFCs) and financial institutions registered with the Reserve Bank of India (RBI). Borrow only from apps linked to RBI-registered sources.

Precautions before taking a loan:

Always read the terms and conditions carefully.

To avoid scams, download the app only from Google Play Store or Apple App Store.

Provide only minimum personal information like age, income, job status, etc.

Never share sensitive banking details like card number, CVV, PIN or banking password.

Be wary of apps that ask for unnecessary permissions like access to your contact list or photos.

A high CIBIL score is not mandatory, but authentic loan apps usually require an average score.