In this upcoming festive season, if you are planning to apply for personal loans, you need to be careful. Otherwise, you will fall into the hands of online fraudsters. For individuals who are not aware, a personal loan is an unsecured loan that banks and other financial institutions give to borrowers to help them meet their financial needs. These personal loans help you to pay for a wedding, go on a vacation or pay for an unanticipated emergency.
For any personal loan, an applicant generally approaches a bank. And in case, they cannot get any loan from the bank, then they will have to approach a fintech’s door, albeit not literally.
Several financial technology firms are there which offer personal loans to borrowers such as KreditBee, Lendingkart, Paytm, Money Tap and Groww.
However, before you approach them for personal loans, be careful about the three key factors. You must avoid these mistakes while borrowing money on a fintech platform:
Unregistered with RBI
The fitech firms must be registered with the RBI. The Central Bank has uploaded a list of registered non-banking financial corporations. In times of need, you should seek personal loan only from a registered NBFC or a fintech platform that has partnered with a registered NBFC.
Tempted by the downloads
Before taking a personal loan from any fintech platform, make sure that the platform is registered and is authorised to in lending activities. If you don't check properly, you will fall into the trap of a fintech platform simply because it has a large number of downloads on the Google Play Store.
Customer care system
Burrowers must take note that the fintech platform should have a well-functioning customer care system. Even as the loans can be accessed digitally via an app, in case, you run into a problem, then somebody should be there to help you out.
