The digitization of credit services has generated a lot of controversy. Although the entire borrower journey has gone online, the former is also prone to an increase in the number of fraud cases today. Hence, borrowers should exercise caution and vigilance when choosing a loan through a digital lending platform.
Check out some important rules to keep in mind before applying for a loan on the digital lending platform. (Also read – Zee Exclusive: Borrowing From Loan Applications; Know How To Identify True Fintech Lenders)
How to apply for a loan on digital platforms
Be careful with research
Make sure you have a good credit rating
When evaluating a loan application, lenders check the borrower’s creditworthiness by checking their credit rating. Consequently, borrowers with a good credit rating and history have a higher chance of getting loan approval and also have a wider range of loan options to choose from.
Do not apply for loans on digital platforms
Avoid working with unofficial sources
Scammers posing as agents of the lender apps and asking for your sensitive information, such as contact information, address, PIN, account number, or bank details, can be risky. Some of these agents may also require cash advance or physical transfer of documents. Therefore, borrowers should be vigilant before sharing any personal information online.
Refrain from obtaining multiple loans at the same time
Although at this time there may be several cases where borrowers may have an urgent need for funds, the loan applicant should avoid contacting several lenders at the same time. Every time a borrower applies for a loan, it affects his credit rating, which in turn reduces his eligibility to apply for a loan in the future.
In times of crisis like today, financial instruments such as personal loans are some of the most important assets to keep afloat. While borrowers enjoy the level of convenience and transparency offered by digital lending platforms, adhering to these rules and regulations will help further protect their financial health and future.
(Comments from experts Gaurav Chopra, founder and CEO, IndiaLends – a leading lendingTech company)