Produced by: Teena Jain Kaushal
Designed by: Manoj Kumar
Chinese lending apps are known for their swift and convenient loan services through digital platforms. While they offer quick access to loans, it's essential to differentiate between regulated entities and illegal apps. Here are 6 tips to help you make that distinction.
Ensure the lending platform has the support of a non-banking financial company (NBFC) or banks regulated by the RBI. Regulated entities like NBFCs and banks monitor such lending apps.
Before sharing personal information or accepting a loan, thoroughly research and verify the legitimacy of the lending app.
Carefully review the terms, interest rates, and repayment schedules before accepting any loan.
Legitimate lenders typically do not charge upfront fees. Be cautious of apps that request payments before loan disbursal.
Check if the lending app provides valid contact information and accessible customer support channels.
Read user reviews to gauge the app's reliability and credibility based on others' experiences.
If you encounter a potentially illegal lending app, report it to the RBI or relevant authorities.
Recent data from the Union finance ministry shows a significant increase in complaints against digital lending apps, with over 1,062 reported in FY23.
Lastly, remember that borrowing should be a last resort, used only when necessary. Avoid taking loans solely due to their easy availability.