How Safe are Loan Apps?

  • Updated on: 25 Jun 2024
  • Published on: 26 Oct 2020
How Safe are Loan Apps?

With rising inflation and instability in markets, daily expenses are increasing, and investment returns may be affected negatively. From paying rent to managing medical costs, you may require funds at any time and a personal loan can help you bridge the gap with ease. Are you wondering, is a personal loan safe?

Yes, a personal loan is safe when you borrow it from a reliable lender. Today, thanks to instant loan apps, getting such a loan is hassle-free and quick. With instant loan apps, there’s no need to visit a lender in person. You can complete all your loan formalities from the comfort of your home. 

While these apps uncomplicate the process of getting funds, have you ever thought, is a mobile loan app safe? This is a question of concern for many, and because of such doubts, you may even hesitate to install a loan app to avoid falling prey to fraud and scams. This is the reality today since as per an RBI report, the year 2021-22 witnessed approximately 9000+ bank scams across India. 

This whopping number may make you think twice about downloading and using a loan app. However, you can check the credibility of a loan app by verifying the lender’s authenticity. Read on to know how. 

How to ensure you are using a safe loan app?

To answer the question, ‘Is a mobile loan app safe?’, follow these tips. 

Check the app company’s website and offline address

Before selecting a mobile loan app, it is crucial to know the whereabouts of the lender or lending partners. All you need to do is ensure your loan app provider has a physical address. When you cannot locate the address, there are chances of it not being a genuine loan app. 

The simple logic is that a credible loan app provider must work from a registered location. So, when you check their details online, the website should have:

  • Name of the lender
  • Phone number of the lender
  • Email address
  • Physical office location

Furthermore, to verify the app’s authenticity, check the website of the parent company. A credible lender usually has the official website linked to the loan app. If the loan app doesn’t contain these details, be cautious as you may not be installing a safe loan app.

Verify if the app is approved by the RBI

The easiest way to answer the question, how safe are loan apps, is to check the 

if the app is registered with the RBI. A genuine loan app needs to have these credentials to be able to offer credit in India. Unauthorised lending apps don’t have these details and you may consider this a red flag. 

All authorised mobile apps are approved by the RBI, which has mandated that such apps provide the name of the bank or NBFC they are associated with upfront. In fact, you can file a complaint with the Sachet RBI portal online if you come across a fake lending app. 

Be alert about the permissions asked for by the app

Your PAN number, Aadhaar card details and other KYC-related information is crucial to loan processing. However, check if the app is trying to access your email, gallery details or phone contact list. Such instances reveal that you may not be installing a genuine app. 

With technological advancements, financial service providers do not require access to your personal data. In fact, such companies have many layers of protection in place to ensure your data is not copied, misused or stored beyond a point. So, check the app’s permission settings as soon as you download to make sure such data remains safe and inaccessible to the loan app. 

View the reviews and ratings of the loan app online

Checking the ratings is most of the most effective ways to answer the question, how safe are loan apps? Most borrowers submit reviews on search engines like Google about their experience of installing and using a loan app. A quick search can help you access these. 

All apps also receive ratings on the App Store and Play Store and have reviews here too. Check them as well to ensure the app is genuine. 

Now that you know how to check the authenticity of a loan app, follow these simple tips before you proceed. If you’re searching for an authorised app, look no further than Fibe’s Personal Loan App. With 21 million+ app downloads and more than 5.5 million instant loans already disbursed, we are trusted by more than 21 lacs happy customers!

At Fibe, we disburse your loans in just 10 minutes and keep your data secure. Give us a try and upgrade your life with our credit facilities. 

FAQs on the safety of loan apps

Are instant loan apps safe?

You should always go with an RBI registered lender or financial institution. Instant loan apps are safe provided you check the authenticity of the lender before installing them. 

How safe is it to avail of online loans?

As long as you search for reputable lenders verified by the RBI, online loans are safe. Make sure you check the loan policies such as rates and fees applicable, repayment timelines before you sign up.

Can the loan app access my bank account?

A credible and authentic loan app will not access your bank account. Your bank statements are usually accessed through third-party applications to assess your eligibility. Make sure you check the app’s credibility to decrease any chances of fraud. 

Is it safe to share documents when availing of a loan?

With an authorised and reputed lender, sharing your documents to avail of a loan is safe, whether on a loan app or the lender’s website.

What should you avoid when availing of a loan?

You should hold off on taking a loan when:

  • You are unsure of the repayment amount within the specified repayment tenure 
  • You are only eligible for loans at high-interest rates, which are too heavy on the pocket 
  • You cannot understand the loan terms clearly 
  • You have not verified the credibility of the lender

What are instant loan apps, and why is it important to be cautious while using them?

Instant loan apps are mobile applications of banks, NBFCs or other financial institutions that offer loans or credit. It is important to be cautious while using them as some of these apps either mimic genuine apps and are created by fraudsters or are designed to scam you. 

What are the safety tips to consider before using an instant loan app?

Some of the safety tips you can follow before using an instant loan app are to check if the company’s website and physical address are mentioned on the app. You should also verify if the lender is approved by the RBI and that the app is not asking for permissions to access to your contacts or gallery. Lastly, check reviews of the app online to ensure it is genuine. 

How to Check If a Personal Loan App Can Be Trusted?

To check if a personal loan app can be trusted, look at the ratings it has as well as other customer testimonials. Ensure that the lender is registered with the RBI and check if the lender’s website and official address is also given on the app. 

What are 3 easy ways to identify a safe instant loan app?

Some of the easy ways to identify an authentic and safe mobile loan app are:

  • See other customer reviews about the app
  • See if the lender is registered and approved by the RBI
  • See if the physical/offline address of the lender is mentioned as well as the official website of the lender

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