Reviewed by: Fibe Research Team
EarlySalary, one of the leading applications for instant loans, is introducing a customer-centric consumer awareness intending to educate them and make them more aware of the risks and necessary precautions associated with online lending and related platforms. Instant loan apps have come under public scrutiny and faced widespread criticism due to recent scams and frauds that involve transactions amounting to whopping INR 423 crore, spread over 75 bank accounts, and carried out through 30 mobile applications, none of which were approved by the Reserve Bank of India (RBI).
The preliminary investigations have revealed that about 1.4 crore transactions worth INR 21,000 crore have taken so far, which goes on to show the importance of consumer awareness to help them avoid these frauds and scams every time they engage and interact with an instant loan app. The #BetterWay and #SafeSigns campaign by EarlySalary focuses on encouraging and instilling best case practices and practicing necessary caution when it comes to letting digital lending apps gain permissions and access to their devices, some of which are listed below:
When applying for instant loans through instant loan applications, do not throw caution to the wind. Fraudulent instant loan applications focus on distracting consumers from the overall terms and conditions and focus on the speed of the process. Hence, before you grant permissions and access to sensitive information to digital lending apps that provide attractive instant loans, always go through the terms and conditions and ensure that it only accesses the information while the app is in use and not in the background while you are running other applications.
Not reading the fine print can hurt you, and many fraudulent applications ensure that the small print is as minute as possible to distract you from going through the terms and conditions. A recent study found that an appalling 97% of youngsters aged between 18-34 consented to terms of service without even reading them. Hence, the next time you are about to click on ‘I agree’ without actually revising the terms and conditions and looking into the privacy settings of the app, remind yourself about the importance of doing so and only choose instant loan applications with apt and sound privacy settings to provide information breach and fraud.
Look out for the #SafeSigns when using a lending application to apply for instant loans and avoid scams that can dupe you of sensitive information and hard-earned savings.
Looking out for important #SafeSigns also involves ensuring that the terms and conditions of the lending application are reasonable and viable. One popular example is the interest rate offered by applications that provide instant loans.
As a customer, you should steer clear of interest rates above 3% per month, as this can be a huge red flag. Although interest rates can vary depending on the loan period, it is always advised to read the terms and conditions associated with the final interest rate before submitting your final application and you should constantly monitor your interest rates.
Finally, when you are applying for instant loans on lending applications, always take out the time to check whether or not they are listed on RBIs official website. Instead of taking convenient shortcuts that can contribute to monumental financial losses, in the long run, dedicate a few extra minutes to run a quick background check and verify the credibility and authenticity of the application you are trusting your sensitive data and information with.
Legitimacy is a huge factor that is often overlooked but can help you save a gargantuan amount of money by helping you make the right choice.
There are undoubtedly a plethora of lending apps providing attractive instant loans online. However, practicing necessary caution is one of the best ways to have a safe and secure experience. Always remember, before letting an application gain access to your personal details, always look at factors and features concerned with privacy, legitimacy, and pricing for a seamless and pleasant experience.
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