Are Instant Loan Apps A Boon Or A Ban for India?

Do you want financing? We offer instant financing on your phone, bike, and whatnot. We all have seen these attractive ads on TV and online. Are they telling the truth, or are there issues? We will find out the truth in this blog. Our focus will be on instant loan apps and their impact on the Indian Economy. 

There are so many micro-financing companies in India. We shouldn’t deal with them unless we are sure of their authenticity and operations. Choosing an organization with a prominent Credit Card DSA partnership will help you avoid getting scammed. Make sure to gather enough information about the bank or financing company before getting the loan. 

Aspects We Need To Know About Instant Loan Apps 

We want to give you information about all the important aspects so that you can confidently apply for a loan and make good use of the money. Here are some mandatory items you should know-

  • Who Regulates These Apps? 

The RBI must regulate the loan app you are using. Every now and then, the RBI central body bans some of the loan apps that are present in the App Store. Try to check whether your app belongs to that list or not. If the RBI approves certain loan apps, you are safe to use them to get money. We have given you the most effective way to check the authenticity of any financial tool. 

  • Mention the Purpose Of Getting A Loan 

When you are applying for a loan, it is important to mention the purpose of it. Depending on the purpose, different loan apps are present in the app store. Check the overall loan options of a particular loan app and find the best one that suits your purpose. 

  • Read the Policies Carefully 

After consulting with financial experts, we have concluded that most people don’t read the policies before applying for a loan. If you want to avoid getting scammed or experiencing any discomfort, we need to learn about their policies carefully. If you have any questions, experts are here to help you out. 

  • Repayment Facility 

Getting a loan these days is not difficult anymore. Anyone with some monthly income can get a loan, but most people don’t think about repayment before getting the loan. This is a malpractice that will bother you in the future. Always calculate the possibility of your loan payment before having the money in your hand. 

  • Do Credit Score Matters? 

Credit score or the CIBIL score is hugely important in India. If you have a standard score, the app will easily approve your loan application. Fortunately, most loan apps offer free CIBIL score checking. Make sure to learn about your score and then proceed. 

Why are These Instant Loan Apps Good For Our Economy? 

Before deciding whether these apps are good for our economy or not, read the following points- 

  • Getting Instant Loans Is Now Possible 

Unlike conventional loan facilities, these loan apps will approve your loan application almost immediately. All you have to do is upload the necessary documents online and check your status. 

  • The Documentation Process Is Easy  

Once you save the documents in the app, you don’t need to do it anymore. It is time to choose the loan amount and apply. It will take a few minutes to analyze your score and then most likely approve the application. 

  • Interest Rates Are Attractive 

The interest rate is similar to any other personal loan in our country. So you don’t need to worry much. Check the Axis Bank DSA registration before taking the loan. 

Possible Issues Regarding Instant Loan Apps 

There are some difficulties and concerns related to these loan apps as well. Here are a few- 

  1. There have been cases where people suffered from data breaches. 
  2. Your phone’s contact numbers can be misused for promotional activities. 
  3. When someone fails to repay the loan, some people face harassment and all.  

We can’t ignore these issues as the atrocities are increasing over time. 

Taking The Final Call 

After comparing everything, it is time to decide whether these loan apps are good for us or not. There are benefits to having instant loan approval. Yet, lack of financial awareness and security is causing issues. We have to make people aware of the potential threats so that they can get the benefits and avoid problems easily. 

Related Articles

Leave a Reply

Back to top button