Personal Loan App : Why should you be careful?
Loans and financing facilities have been extremely popular ever since the inception of the concept. With modern inflation and a global economic crisis due to the pandemic, loans and finances have gained rising popularity.
Using a personal loan app sounds to be a great option for individuals who are looking for a quick loan.
A personal loan app is a specific application or a platform that allows people to apply for and avail loans quickly and conveniently, from their mobile phones. It is an extremely easy and flexible loan option that enables people to avail loans within a span of a few minutes.
What is it that you need to know?
The popularity of these Personal Loan Apps rose as soon as people realized the immense convenience of such platforms.
The low documentation needed to get loans on such platforms has been a big factor in the popularity of Personal Loan App.
The easy and flexible repayment options have also been a factor behind its popularity.
However, despite all of the advantages, there are several fake loan apps that are involved in defrauding loan seekers.
So, you need to understand that not all online lenders are trustworthy.
Check an online Consumer Forum like Voxya.com and you will realize that there are hundreds of reports against these fake personal loan apps.
Why should you be careful?
Besides all of the advantages that a personal loan app brings to the table, there are several disadvantages too. And believe it or not, there are a few big ones.
Since these instant personal loan apps are private and there is almost no human interaction, so there have been several scams that have been reported against them.
In the majority of cases, a fake personal loan app will ask for a huge processing fee from the loan seeker and will promise to refund it after loan disbursal, which never happens.
Another example is to charge an unreasonable rate of interest from borrowers for providing loans.
In one such case filed by a consumer against a personal loan app, though the payment was made but repayment was not reflected in the loan app. The consumer had to send several emails for the issue to be resolved.
Another example as reported on voxya.com relates to sending fake legal notice to the consumer.
Though as per the RBI guidelines, all financial Institutions have to provide a moratorium period during the COVID-19 lockdown but a personal loan app company harassed a borrower during the period and forced him to pay the loan. It even sent a fake CBI legal notice to the consumer to threaten further.
In some cases, the loan was disbursed more than the application and the consumer was forced to repay the associated interest and penal charges.
Though few issues can be resolved by taking Legal action but the hassle attached to them and the fear of losing your hard-earned money is something which you should consider.
So, it is advised to research a bit on the internet regarding personal loan app before you decide to take the loan.
Top personal loan apps and frequent issues with them
There are many instant personal loan apps in India, most of which are genuine. However, no one can deny that a lot of them take advantage of being private and sometimes harass the borrower in many ways.
Here are the top nine most popular instant personal loan apps in India.
Dhani has been one of the most popular personal loan app in India. Popularly known and marketed as the “Phone se Loan” app, the app instantly disburses the loan amount to the borrower’s bank account. The app provides loans of up to ₹ 15,00,000.
Why should you be careful?
The Dhani app, by Indiabulls has been subjected to a few consumer complaints already. However, the complaints have not been about scams or loot, but instead for lack of proper consumer service. One example is where Dhani did not auto-debit EMIs from consumer’s bank account for a considerable number of days but then charged a penalty for late payment. Find out here.
Another excellent instant personal loan app, Kissht provides a horde of finance and credit facilities to users. The app is known for disbursing loans in just five minutes of time. The platform enables users to avail quick personal loans, line of credit, and online shopping loans.
Why should you be careful?
Kissht also has its share of consumer complaints when it comes to consumer service. A consumer complained about auto-debit of EMI, which happened early in a month and bounce charges were levied. However, it was promised that the penalty would be waived off on payment, but the same did not happen even months after the incident. Read full story here.
An instant personal loan app from PC Financial, this app is an extremely simple and quick way to get loans instantly. The platform provides easy and quick personal loans of amounts ranging between ₹ 1500 to ₹ 60000. The app provides multiple offers and discounts on processing fees reduction along with low-interest rates and flexible EMIs.
Why should you be careful?
Cashbean, though a very popular personal loan app in India, has many consumer complaints to its name. It has many complaints filed at Voxya and has a consumer satisfaction percentage of under 50%.
Moneyview is a multi-purpose money management app available on the iOS and Android platforms. Along with being a money management app that tracks your expenses and helps in managing it, Moneyview helps users secure easy and instant secured personal loans of up to ₹ 5,00,000.
The app has a flexible interest rate ranging from 1.33% to 2.5% per month. The repayment can be done in flexible EMIs of variable tenures, from 3 months to 60 months.
Why should you be careful?
According to a few borrowers, Moneyview has auto-debited EMI amounts twice and the same dispute takes a lot of time to be resolved. This of course points at the lack of good consumer service. Read about one of the complaints here.
MoneyTap is one of the very first app-based credit lines in India. The app comes with an attractive feature of “no usage no interest.” This makes the system of taking credit more feasible and affordable for consumers. The app provides a credit line to customers, which is more like a credit card or even an instant loan. The users only pay interest for the amount they used.
Why should you be careful?
Though Moneytap takes care of consumer complaints, there are still occasional dips in the service. You should consider reading about the complaints and scams before you file for a loan.
KreditBee is another excellent instant personal loan app that is mainly aimed at young professionals. The app offers a completely digital and paperless loan approval process and the loan amount gets disbursed into the person’s bank account directly. You can get a loan of up to ₹ 1,00,000 In the app.
The loan disbursement is simple, quick, and hassle-free and the entire eligibility check, verification, and approval are done in less than 15 minutes of time.
A Fintech startup based out of Pune came up with this app known as Early Salary. The app has been an immense success all across India as it allows easy and instant personal loans to users. Considered one of the best personal loan app in India, Early Salary provides loan amounts of up to ₹ 2,00,000 to users.
The interest rates are considerably low starting at just 2% per month.
LazyPay is another very popular instant personal loan app in India that is available on all mobile platforms. It is powered by PayU and all you need is your mobile number to check out your personal loan eligibility. The app is known for its quick and easy approval of loans along with safe online loan application processing.
The app offers pocket-friendly EMIs and an instant personal loan of up to ₹ 1,00,000. The application process is completely digital with minimal verification and documentation.
Stashfin is one of the most reliable instant personal loan app in India. Originally, the startup was founded by a group of experienced finance professionals, and the app has been creating ripples in the Indian market ever since its inception. Documentation is 100% digital with an instant eligibility check and loan approval facility.
What should you do if you have been scammed by a personal loan app?
We will recommend you a few things that you should do if you have been scammed by a personal loan app or lender. Take a look.
1. Lodge a complaint with the Lender or app.
2. File a complaint in RBI, if they do not resolve.
3. Approach the local police station, if you have been defrauded. But they don’t take immediate action in most cases.
4. File a complaint about your issue at Voxya.com and provide all the documents and proof supporting your case.
Where can I research personal loan app before applying for a loan?
If you are looking to avail loans by using instant personal loan apps, you should consider browsing through the consumer complaint forum at voxya.com. This platform is where people lodge complaints about products and services and so you can read honest reviews about these apps.
Are the instant loan apps safe?
Instant loan apps are managed by well-known financial institutions, so they are generally safe. However, there are still few unknown and fake apps that are known for scams and frauds.
If you want to be safe from these, you should research about the lenders / apps on the internet and also read about consumer complaints at Voxya.com.
What to know before applying for a personal loan?
Here are the most important things to know before applying for a personal loan:
1. Why you need the money (and if there’s a better option)
2. How much you can afford to borrow (and payback)
3. Your credit score (and credit history)
4. The exact terms of the loan, including the APR and all (hidden) fee & charges
5. All of your loan options, including research on which app to use
Which app is the best for instant personal loans in India?
The best apps for instant personal loans in India based on the rating and popularity are:
How do I get a personal loan by using a personal loan app?
1. Download & apply: Download the instant personal loan app of your choice and apply for a loan through the app.
2. Instant Approval: Fill in your details and get instant approval on the loan amount.
3. Check your eligibility and finalize your application.
4. Wait for a few minutes for the application to be processed and approved.
5. The amount will be credited to your wallet in a few minutes.
Is the CashBean app safe?
All the apps that we have talked about in this writeup are legit. However, there have been occasional slips in the reputation. Cashbean, especially, has been one of the highest reported apps for issues. However, this does not take away the fact that it is legit and the loan approval process is seamless.
Can I get a loan without a salary slip?
No Salary Slip – No Problem
Traditional lenders require your credit score and credit history in addition to financial statements. However, if you do not have salary payslips, you can still avail the instant personal loans.
Does CashBean affect the CIBIL score?
All the loan apps will affect your CIBIL score if you are not regular in your repayments. Your CIBIL score will affect your ability to avail loans from any bank or financial institution in the future.
When you fail to pay your EMI on the online loan, the lender will send you an intimation about the amount due to be paid. You can then repay the loan with a penalty as prescribed by the lender. You will find your credit score reduced after defaulting on your online loan.
Can you go to jail for not paying an online loan?
A loan is a debt, and you have a civil obligation to repay it. The lender can enforce this obligation in civil court, but no more. You can only go to jail from criminal enforcement and not civil enforcement. A civil judgment does not allow the creditor to put you in jail.
What are the advantages of instant personal loan apps?
Instant personal loan apps have several advantages and benefits, especially when it comes to convenience and utility of commoners. People all across the country have used and availed the facilities provided by instant personal loan apps extensively.
Here are a few advantages of personal loan apps that have made them a favorite.
These platforms are highly accessible and within easy reach of most people, whenever, and wherever they need a personal loan. A simple smartphone and an Internet connection can help you avail loans from such platforms.
Minimum and easy documentation
There are no additional hassles of physical verification and extensive documentation to get a loan approved. On most apps, all you need is your PAN Card, Address Proof, and Adhaar Card (as an ID and for KYC verification). And just with the pictures of these documents, you can get easy loans.
The personal loan app provides flexible repayment tenures ranging from 62 days to 1 year or even more. This makes it easy for the borrower to pay off the loan in easy EMIs.
Quick and easy sanction
The loan application on such platforms almost never gets rejected and if you have the right documents, you can easily get your loans sanctioned.
Relaxed eligibility criteria
The eligibility criteria to avail such loans are considerably relaxed and people can easily avail loans that range in 6 figures!
Applying and getting an instant personal loan in India has become incredibly easy and convenient. Although loans are always an option in times of financial crisis, one must keep a track of their entire expenses and manage their monthly or annual budget to effectively pay off the loans in time.
While there are many personal loan app providers, an online search and a quick comparison between these apps can help you make the best choice and explore a multitude of options available in the market.
But the bottom line remains: MAKE SURE THAT YOU SEARCH THE INTERNET TO BE SURE THAT THE LENDER YOU ARE TRUSTING HASN’T BEEN INVOLVED IN ANY TYPES OF SCAMS.
But don’t worry, even if you fall in trouble, there is Voxya, that can help you resolve the issue!