6 Signs that will tell you if a lending app is fake

The crackdown on fake loan apps came heavy as the government of India had 27 online loan apps banned in India, early on this year. This decision was carried out by the Ministry of Electronics and Information Technology (MeitY) after reciveing a request from Ministry of Home Affairs. Too many fake lending apps had been lurking on Playstore and Appstore cheating users off their money. Unfortunately, this was in a climate when people were in need of funds, usually after being turned away by traditional lenders.

These incidents shook the trust people had in these lending apps quite a bit. But it was not all gloom and doom as there were trusted apps that also helped several people secure funds instantly. This proves one thing – the market for Fintech companies is here to help and it is growing.

If you are looking to borrow funds from a trusted app and not fall prey to fake lending apps, take heed of the below signs and make informed decision.

            Also Read: How To Protect Yourself Against Business Loan Scams

1. Get details about the lender
Is it a known brand? Is it a reliable brand? Has someone else reviewed this lender? These are the questions you should have answers to before you put your trust in any of the apps. Be sure to trust only known brands so that you will be assured of the authenticity of transactions.

2. Check the developer section on the App store
To check if an app is fake or not on Appstore or Playstore, check out the developer section. More often than not, a company website should be listed. If there isn’t one then it is a huge red flag. Many fake lending apps for android or iPhones do not list a website at all. In some instances, they may list a fake website. Do not download such apps.

3. See if the lender's website is secure
Often, the apps list a website which it may also be an unsecured website. A secure website always has https:// written before its website address. This shields your data from cyber criminals.

4. Ensure the lender cares for your credit history
The first thing any legitimate lender wants is your payment history. It provides a base for your capability of paying back the loan. It is also a factor to determine your chances of loan approval and the rate of interest.

            Also Read: Tips To Make Your Loan Application A Hassle Free Process

5. Avoid deadline-ridden offers
Fake lending apps have just one goal—take your money and disappear. So, they may shower you with what may seem like attractive deals and say that it is for a limited time. Legitimate lenders will not pose such deadlines and would have a list of protocols for initiating any kind of funds transfer. If you are being forced to act quickly then be assured that you are being scammed and the app is a fake.

6. Read the reviews
A lot of times, you can get a hint about the app’s authenticity from its user reviews. If the app has managed to frustrate a few borrowers enough, there will be a review or two about it. So, read the reviews before you download the app.

Do your research well before applying for a loan from a lender. You can rely on Hero FinCorp for error-free and customer-oriented service. You can even check out the Hero FinCorp customer service app to get all the necessary details you need regarding loans.