Personal loan apps have been a boon to borrowers. There are many who use these apps on a daily basis for their financial needs. This comes as no surprise since personal loan apps prove to be extremely efficient as well as convenient to the borrower.
However, with so many apps out there, there are also a few that are fake ones. Such apps present lucrative offers, which are nothing but a hoax. This is why it is important that as a borrower, you need to be able to identify such apps. The good thing is that these apps have clear indications of being fake/fraudulent.
The next time you are searching for a personal loan app, make sure to keep an eye out for 5 of the following signs that indicate fraud:
- Upfront payments
Any personal loan app that requires you to pay cash upfront is a clear indication that you should not use it. Such apps will require you to pay an upfront fee or a “membership” fee, but once you do so, you will never hear from them again. A genuine instant loan app would never require any kind of upfront payment.
- No physical address
You should be very particular about checking a personal loan app’s physical address before you use it. If you face any kind of complication while using an app, it always more reliable to visit its office to sort out your problems. But if the app does not have a physical address, there is no way you can catch hold of anyone.
- Poor ratings & reviews
The best way to understand the reliability of a personal loan app is to check the ratings of the app. You can also read the reviews given by borrowers who have previously used the app and are sharing their experiences. This is a good way to find out how satisfied users are with the app. It is best to steer clear of apps that have garnered too many bad reviews.
- Asks for a prepaid debit card
Certain personal loan apps would require you to provide a prepaid debit card. They claim that they need it for collateral, insurance, or some kind of fee. These apps are definitely a scam. Any genuine personal loan app would deduct any charges directly from the loan and never require any kind of prepaid debit card.
- Limited period offers
This is quite a common one – a lot of borrowers get calls pressuring them into taking offers that expire the very next day. Do not fall for this scam, this is just a tactic to hurry you into taking a rash decision. Rather, go for a good personal loan app that offers suitable loan plans throughout the year.
Keeping these signs in mind will help you distinguish the genuine personal loan apps from the fake ones. Also, it is always advisable to read the terms and conditions of a personal loan app before using it just to be safe. We hope this article has been informative, all the best!