Hyderabad: Lots of new firms and digital loan apps mushroomed, giving small loans instantly. As they are small, many are falling into the trap only to face big trouble in the form of exorbitantly high interest rates, excessive instalments and ultimate torture. The same shadowy firms which pester us with their pleas to take these relatively much smaller loans will give an unimaginably tough time in the name of recovery.
Many people are falling victim to this psychological turmoil because of such illegal loan firms. Hence, we should cautiously follow dos and don'ts when any firm comes offering loans. Much care needs to be taken when taking a loan to meet an urgent need. After Cogid-19, many lost their earning power while financial needs went up considerably.
The loan firms are trying to encash the helpless situation by giving loans unauthorisedly. They are giving Rs 3,000 to Rs 3 Lakh loans. Later, these apps are putting borrowers to torture by collecting exorbitant interest. Against this backdrop, everybody should make sure to check the track record of the firms and apps from which they take loans.
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In India, firms giving loans should have RBI (Reserve Bank of India) recognition or should be affiliated to an RBI recognised financial institution. When taking digital loans, check the app concerned has RBI recognition or not. The registration numbers of the respective firms can be checked in the RBI website. Just like the firms take our full KYC (know your customer) details, we should enquire full details about those creditors.
These days, the loan apps are sending messages saying no need for credit score or income proofs. Such apps are undoubtedly fraudulent. They would try to steal your crucial personal data, address and other details. So, we should not give our details to everyone who asks for it. Sometimes, they say they are calling from loan firms for collecting your bank account number, credit, debit car numbers and so on. Don't fall into their trap when they ask for card expiry details, PIN, OTP in the name of depositing loan amount in your account.
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The RBI guidelines warrant loan firms to inform terms and conditions to borrowers in advance. Fraudulent apps do not follow these rules. They collect very high interest rates and excess instalments. So, one should look at the agreement to check scrutiny fee, interest rate, term of repayment, penalties before taking a loan.
Know address of loan apps and their agreement with which bank or NBFC (non banking finance companies). Digital loan app without a website is suspicious. A firm not bothering about KYC cannot be trusted. Never pay processing and other fee before the loan is sanctioned. Banks and NBFCs adjust such fee from within the loan amount.
