Now Reading: How to spot a fake loan app before losing money
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How to spot a fake loan app before losing money
Fake loan apps are growing in number, RBI warnings say, often promising instant money and low interest to trap borrowers. The apps mimic legitimate lenders but can steal personal data and demand…
Fake loan apps are growing in number, RBI warnings say, often promising instant money and low interest to trap borrowers. The apps mimic legitimate lenders but can steal personal data and demand repayments far higher than the original offer.
Puja Abhishek Singh of Manipal Fintech warns of red flags: unclear lender identity, excessive app permissions, and instant approval without credit checks. Borrowers should verify the lender's name through the RBI's Digital Lending Apps directory and check that app store details match the lender's official website.
Apps that ask for contacts, call logs or media files are a major warning sign, as these have no legitimate use in a loan assessment. Before accepting a loan, borrowers must check the total cost including APR and fees, and never share Aadhaar, PAN or bank details through an unverified platform.
Indian Opinion Analysis
The RBI has long struggled to police the flood of digital lending apps, many hosted outside India beyond its regulatory reach. In 2022 it published a whitelist of legal lending apps and banned several illegal ones, but new clones appear faster than the regulator can update its list. For a borrower the real check is simpler than a database lookup: the RBI says no legal app will ask for your phone contacts, gallery or SMS logs. Any app that demands those permissions for a loan is almost certainly a data-harvesting scam. An MFI or NBFC authorised to lend will also always link to its RBI registration number and its own regulated entity's website.
Source: indiatoday.in
This brief was synthesised by AI from the source linked above.
