When lockdowns were introduced during the COVID-19 pandemic, all the banks and other financial institutions got closed. Thus people had to move to online digital lending platforms for credit and loans during these tough times. Although these digital lending platforms were existing before, the pandemic was a golden opportunity for them. Many new fin-tech companies also entered the lending market to meet the requirements of the many new customers. If you are also looking to apply for a digital loan on these platforms, here are some details that you should check out beforehand.
Check the credibility of the lender and if they are RBI-registered
The Reserve Bank of India has already issued guidelines that digital lending platforms need to follow while providing digital loans to customers. Therefore before applying, you should check if the digital lending platform is RBI-registered. This increases the credibility of the lender. You can also inspect the ratings and service of the digital lending platform by visiting various forums and websites where users leave their reviews. This will allow you to get some crucial information about the lender.
Ensure that the digital lending platform has robust customer service
When you inspect the reviews of the previous customers, you should focus on their experience while using the digital lending platform. If it is your first time applying for a digital loan, you can make mistakes in the process. In such situations, robust customer service provides fast service. They will understand your problems and provide apt solutions for them. Thus, it is essential to have a responsive and quick customer service support team that can guide new customers whenever they get stuck applying for a digital loan.
Read all the terms and conditions carefully before accepting
As the credit underwriting process of a digital loan is more flexible and simple than traditional loans, it is easier for people to get verified for it. But one should not blindly accept all the terms and conditions just because it is easier for them to get a digital loan. Before applying or accepting, you should read all the terms, conditions, and clauses mentioned in the digital loan application carefully. If you are confused regarding any part, you can either call the customer service for a clearer explanation or you should reach out to any individual who is more qualified and informed regarding these matters. It will prevent you from falling into debt traps of financial loopholes.
Do not give access to your private information to any lender
While accepting the terms and conditions of the digital loan, you should make sure that you do not provide any private information in the credit underwriting process or any other part of the loan application. Never share your debit or credit card details, OTP numbers, passwords, and other such sensitive information with anyone. Use the two-step authentication feature on the digital lending platform if it is available. It helps in reducing the risk of getting scammed.
These are some things that you should know about beforehand while applying for a digital loan.
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