Getting loans from fintech apps? Here's how to protect yourself from frauds

New Delhi: Fintech apps has transformed the lending and payment landscape in India in recent years. In terms of lending firms, the industry has seen amazing expansion, making loans more accessible to customers. These loan organisations, which are rife with chances, have drawn both investors and scammers.

While digital lending offers the potential to make financial goods more accessible, efficient, and inclusive than traditional banks, clients should be informed of the hazards associated with such endeavours. Borrowers who have a basic understanding of digital loans and the lending procedure will be better protected from fraud.

Before relying on fintechs for loans, a lender should consider the following factors:

• All lenders are worried about a borrower's credit record and examine their payment history in depth. Fintech lenders analyse a borrower's credit score using artificial intelligence models. The procedure may be quick, but it is always carried out to determine whether the borrower is serious about repaying a debt. Loan scammers are more likely to ignore the borrower's personal information.
• Fraudulent lenders target high-risk debtors in desperate need of a quick loan.
• Scamming lenders usually put borrowers under pressure to apply for a loan by giving them deadlines.
• Know-your-customer (KYC) standards are implemented by all lenders, and borrowers should be wary of fintechs that do not respect KYC rules.
• When receiving money from a lender, borrowers should never scan a barcode.
• All details of the loan, including the payback amount, interest, late fees, and length, are not disclosed by shady lenders.
• With borrowers, all lenders share a loan agreement that contains all of the terms and conditions in full. The borrower should not accept the loan if the lender fails to produce this document.
• Before asking for a loan, borrowers should do their homework on potential lenders. Before downloading any app, make sure the lender has a legitimate website.
• If the borrower is taking out a loan using an app, it is always a good idea to look over the loan app thoroughly. They should also read the app's privacy statement, which is available on the app store.
• To avoid being tracked, fraudulent loan operators would occasionally withhold the company's physical address.