Submitting documents online for a personal loan - will it lead to cyber fraud?

The online personal loan facility has taken off in the recent Covid -19 scenario due to major loss in jobs, delayed salaries, or loss in business. In contrast to secured loans, a personal loan can be borrowed for multiple reasons like home remodelling, weddings, higher education, debt consolidation, and medical. It covers many more dreams and aspirations and helps to accomplish milestones step by step.
 
A personal loan online better known as an instant loan is an unsecured and fixed loan that disburses loan amount on the same working day. However, personal loans have an affordable interest rate and can be repaid quickly with low EMIs. Besides, online personal loan eligibility criteria are simple and can be adhered to by most borrowers, whether salaried or self-employed individuals. In addition, the hassle-free paperless process makes it faster to avail.
 
But despite this instant online process, do you fear the occurrence of cyber fraud with the submission of paperless documents online? This article will clear your vision regarding cyber fraud when documents are submitted online for the loan.

How does submitting personal documents for a loan online lead to cyber fraud?

A phishing attack is a practice by fraudsters to illegally procure personal information like account numbers, user ids, and passwords by sending emails claiming to be reputable companies. When a financial emergency strikes, borrowers don’t see much about the lender and hurriedly apply for loans online. This state of urgency and panic causes fraudsters to take advantage when borrowers often click on wrong links and submit their personal data.
 
Always check for reputed financial institutions with the contact information like lender's number, email-id, and physical address, which should be readily available on its official website. There are several loan apps online but verifying borrower’s credibility is significant to keep the personal information protected.
 
Make sure the financial institution or NBFC is registered. Also, read through the online reviews before applying for a personal loan. So, when these things are available, it is safe to submit personal documents for a loan online with a stringent security password.

Can document submission online lead to cyber fraud?

Undoubtedly, Cyber fraud is increasing at an aggressive rate. Cyber fraudsters are always looking for ways to hack accounts for money. In addition, you should be aware of causes leading to cyber fraud:
 

• Keep your internet security password strong to stop hackers from getting unauthorized access to your data

 

• Never share your password or OTP number with anyone

 

• Before entering your password and login ID on a loan website or app, always ensure to verify the authenticity of the web page by checking the lender's details and online review of the people

 

• Fake lending apps will not list a website at all, but they may list a fake website. Avoid downloading apps which you have never heard

 

• Always keep changing your password and set a strong password with alphanumeric characters

How has minimal paperless documentation simplified loan applications?

The online loan procedure has simplified and brought revolutionary paperless documentation in contrast to the traditional school of availing loans, which required lengthy and detailed documents while applying for a personal loan. 
 
The hassle-free paperless documentation with E-KYC verification has enabled speedy disbursal with minimal documents like your Aadhaar & PAN card. These two documents are mandatory and enough to get you an online personal loan approved in a few seconds.
 

How can a loan app be trusted for credibility?

Although you should be cautious of sharing your information online, many well-known instant small cash loan apps are safe and trustworthy for credibility. Most of the renowned financial institutions and NBFCs operate in a regulated manner. Therefore, most loan apps are reliable and can be trusted when the lender is most concerned about your creditworthiness and the capability to repay the loan on time.
 

It would help if you looked at trusted loan apps for credibility with the following mentioned aspects

 

• Should have a safe and secured loan procedure on the loan app, safeguarding your details with a strong password set in the system

 

• Loan app should have its website, and the company address and information should be present on the app/webpage

 

• Online lender sets some norms and eligibility criteria to get an online loan

 
Loan app should allow you to calculate your loan eligibility and loan EMI with the help of the loan eligibility calculator and EMI calculator, respectively.